Canadian firm Davie Shipbuilding has completed the purchase of Helsinki Shipyard, maker of Arctic icebreaking vessels, from Russian-owned Algador Holdings after securing regulatory approval, Davie said.
Regulators said the deal was not in violation of sanctions on Moscow, according to a source with knowledge of the deal.
While the terms of the purchase agreement are confidential, the transaction was funded by a combination of Davie’s own funds and 77 million euros ($81.77 million) of financing from the Québec government, according to a statement from Davie.
Privately owned Davie announced the purchase of the Finnish company months ago. The deal will help Canada deliver on its C$8.5 billion ($6.2 billion) national shipbuilding strategy program.
Algador Holdings is owned by Russian businessmen Rishat Bagautdinov and Vladimir Kasyanenko, who is also a Belgian citizen. Quebec-based Davie worked with regulators in Finland, the EU, Canada, the UK and the U.S. to ensure the deal was not in violation of sanctions related to Russia’s war in Ukraine, said the source, who was not authorised to speak about the matter publicly.
Closure of the deal dragged out because of due diligence and financial, regulatory and legal considerations, according to a source with knowledge of the matter, the source added.
Algador purchased the yard from Russia’s sanctioned United Shipbuilding Corporation in 2019.
Davie, which is nearly 200 years old, is one of three shipbuilders helping to deliver on Canada’s National Shipbuilding Strategy, with their part being to deliver seven icebreakers.
Canada though has a recent history of shipbuilding projects running into major delays and costing far more than initially budgeted. Davie also plans to pitch the U.S. on creating and upgrading icebreakers, said the source.