The U.K. government, through the Ministry of Defense (MoD), will renationalise the management of the controversial contract that manufactures its nuclear warheads, according to Sky News. The announcement to take the Atomic Weapons Establishment (AWE) is expected to be confirmed in a written ministerial statement this week.
- The announcement of the seizure of AWE is expected to refer to a desire to align the priorities of MoD and AWE, and the contract will be brought back into public ownership by the middle of next year.
- The decision to renationalise AWE is a blow to Lockheed Martin, which holds a 51% stake, the outsourcer Serco, and Jacob Engineering, which own 24.5 each joint venture.
- It is unclear how much compensation the consortium will receive due to the early termination of the 25-year deal established in 2000.
- AWE Management paid 82 million pounds dividends to its shareholders despite ongoing controversy over cost overruns associated with facility upgradesю
- AWE has been affected by numerous issues, prompting the National Audit Office (NAO) to issue criticisms to it and the MoD this year.
Lockheed Martin stock is gaining. LTM: NYSE is up 2.16%