LONDON (ShareCast) - (Sharecast News) - The UK is reportedly in advanced talks to build warships for Denmark and Sweden.
The Financial Times said the discussions have been confirmed by people familiar with the talks. They follow the announcement on Sunday of the UK's largest ever warship export deal, with Norway.

According to the FT, one of the people briefed on the talks said an agreement between London and Copenhagen was "very close, almost nailed on".

Talks with Sweden were "very positive" but more complex because Stockholm was negotiating a range of UK options while also considering a rival offer from France, they added.

The discussions are centred on defence firm Babcock International producing Type-31 frigates at Rosyth in Scotland for Denmark and Sweden. A Danish deal for three Type-31 "Arrowhead 140" frigates is expected to be announced this month.

Denmark may look to build additional Type-31 frigates domestically after the initial order, one of the people familiar with the talks told the FT.

Sweden is looking at placing orders for four Type 31 frigates. Stockholm's decision is due by the end of the year.

The Type-31 frigate is the UK's new all-purpose warship. The Royal Navy is expected to take delivery of five over the coming years to help replace its ageing Type-21 frigates.

At 1005 BST, Babcock shares were up 2% at 1,052.40p.

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