Indian state-owned Mazagon Dock Shipbuilders said it would buy a controlling stake in Sri Lankan peer Colombo Dockyard in a deal not exceeding $52.96 million to grow its shipbuilding and repair business.
The transaction, involving the acquisition of at least 51% equity in Colombo Dockyard, will close within six months, after which the Sri Lankan shipbuilder will become a part of Mazagon Dock Shipbuilders, according to a regulatory filing on Friday.
Colombo Dockyard was not immediately available for comment outside business hours.
Mazagon Dock Shipbuilders also builds warships and submarines, and the deal is seen giving India a strategic foothold in the Indian Ocean island nation where New Delhi and Beijing have been jostling for influence for years.
For 2024, Colombo Dockyard's turnover was 25.45 billion Sri Lankan rupees ($84.89 million), according to the filing, while Mazagon Dock Shipbuilders' revenue for the year ended March 2025 was 114.32 billion Indian rupees ($1.34 billion).
