Vickers Shipbuilding and Engineering Ltd (VSEL) is based at Barrow-in-Furness, Cumbria, England. Now BAE Systems Submarines, the company has built large naval vessels, nuclear submarines and armaments.
In 1994 VSEL was subject to two takeover proposals, one from GEC and another from British Aerospace (BAe). VSEL was willing to participate in a merger with a larger company to reduce its exposure to cycles in warship production, particularly following the "Options for Change" defence review following the end of the Cold War.
Both bids were referred to the Monopolies and Mergers Commission (MMC) which issued its conclusions and advice to government in May 1995. BAe's bid was approved, while the MMC concluded (with 2 of 22 members dissenting) that GEC's bid was likely to "operate against the public interest". However it was GEC's bid that was approved and accepted by VSEL. In many ways it was British Aerospace who was the most likely partner, with extensive capabilities in naval systems (see BAeSEMA), but no shipbuilding capabilities of its own. GEC already owned Yarrow Shipbuilders Ltd (YSL) as well the naval systems businesses of Plessey and Ferranti.
Following GEC's purchase VSEL became Marconi Marine (VSEL), part of the company's GEC-Marconi division. With the merger of British Aerospace and GEC's defence business, Marconi Electronic Systems, VSEL passed to the resulting company, BAE Systems.
Defence companies of the United Kingdom | Defunct companies of the United Kingdom | Shipbuilding companies of the United Kingdom
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