Mazagon to acquire controlling stake in Colombo Dockyard
Colombo dockyard will become a 51%-owned subsidiary of Mazagon Dock Shipbuilders (Source: CDPLC via Linkedin)
India’s Mazagon Dock Shipbuilders will acquire a controlling stake in Sri Lanka’s Colombo Dockyard (CDPLC) in a deal worth up to Rs 4.52 billion (USD 53 million). The move will give Mazagon at least 51% equity in CDPLC, making it a subsidiary.
Located at the graving docks in Colombo port, CDPLC is a public limited company engaged in shipbuilding and repair. Its 2024 turnover was USD 84.4 million with a net worth of USD 17.6 million.
Mazagon is acquiring shares through a mix of primary and secondary transactions, including the purchase of shares from majority shareholder Onomichi Dockyard. The deal is expected to close within six months, pending regulatory approvals.
Mazagon said the acquisition aligns with its long-term growth plan and will enhance its presence in regional ship repair. It also aims to tap into operational synergies and expand R&D capabilities.
In 2023, the US International Development Finance Corporation committed over USD 550 million to develop a deepwater container terminal in Colombo, citing the port’s critical role in Indian Ocean trade.
Mazagon’s move signals India’s growing interest in strategic assets in neighbouring countries, particularly in shipbuilding, where it seeks to bolster industrial capacity and influence in the region.
