Merger canned

By Graham Davis
The proposed merger of the shipbuilding and ship repair capabilities of Tenix and ADI will not proceed.
A combined statement from the two organisations on May 30 announced the decision.

“The decision follows detailed discussions since February this year between the two companies and with stakeholders,” the statement said.

“The parties now believe the merger proposal would not meet the objectives they originally sought.

“Tenix and ADI will continue to explore other ways in which they might work together in the future,” the statement concluded.

Both companies are important suppliers to Defence.

Tenix is building the Anzac Class frigates for the RAN while ADI has just completed the $1 billion contract to supply six minehunters.

ADI is now building a number of replacement landing craft to replace the LCM8s carried by Tobruk, Manoora and Kanimbla.

The companies also seek the contract to build the new patrol boats for the RAN. Tenix has submitted a tender to build a steel craft while ADI has tendered to build the ships at its Newcastle plant using fibreglass.

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