Sri Lanka, June 28 -- Mazagon Dock Shipbuilders Limited (MDL), a leading Indian firm, has announced its decision to acquire a controlling 51% stake in Colombo Dockyard PLC (CDPLC) for up to US$52.96 million.

The deal, which received approval from MDL's Board, involves purchasing shares from the current majority shareholder, Japan's Onomichi Dockyard Co. Ltd.

Onomichi Dockyard is divesting its stake due to financial losses, reportedly stemming from the Coronavirus crisis and low-margin shipbuilding contracts.

Colombo Dockyard, Sri Lanka's largest shipyard, has been experiencing significant financial difficulties, recording a net loss of over Rs.2.7 billion in the year ended December 31, 2024.

This acquisition by MDL aims to provide a s...