Babcock chosen by MoD as preferred bidder for Defence Support Group acquisition

British defence firm Babcock International Group has been chosen by the UK Ministry of Defence (MoD) as preferred bidder for the acquisition of the Defence Support Group.

Defence Support Group is the MoD agency responsible for storage, maintenance, repair and overhaul of military vehicles and equipment and the deal includes a contract to provide the MoD for 10 years, with an option to extend it for a further five years.

"We are committed to working with our customer to ensure we are responsive to the evolving needs of the army whilst achieving improved performance levels, enhanced operational agility and greater cost efficiencies," Peter Rogers, the group chief executive, said in a statement.

Babcock added that it will collaborate with the MoD to ensure the deal is completed by 31 March in order to start the provision contract on 1 April.

Babcock shares were 1.82% up to 1.199.00p at 16:22 on Wednesday.