The Isle of Man government has said it will take over ro-pax operator Isle of Man Steam Packet Company (IoMSPC) for £124m ($167m).
If approved by the island's parliament later this month, the government would acquire 100% of MIOM, IoMSPC's parent.
The BBC cited the island's chief minister Howard Quayle as saying: "Acquiring the national asset is a once-in-a-generation opportunity."
The company links the Irish Sea island to five UK and Irish ports using two vessels.
The deal ends an impasse caused by the government rejecting the company's offer of a new services agreement last year.
IoMSPC had said it would invest £170m, including orders for two state-of-the-art ships for £65m.
Treasury minister Alfred Cannan said: "The deal would immediately bring ferry operations into public ownership but government would not take over the day-to-day running of services."
IoMSPC CEO Mark Woodward said a deal would "consolidate an excellent relationship" and create a "strong, long-term platform to deliver continued investment and sea services that meet the needs of the island".
Qualified backing from unions
The RMT union welcomed the decision.
It said the company is currently controlled by Portuguese financiers Banco Espirito Santo.
RMT national secretary Steve Todd said: "This was one of the best options on the table, although we will need to nail down the terms of the transfer to ensure that terms and conditions, including pensions of our members, are not adversely affected."
And the Nautilus crew union gave a "cautious welcome" to the buy-out.
General secretary Mark Dickinson said: "This is a lifeline ferry service that should not be left to the vagaries of an unregulated market. However, the devil will be in the detail of the services agreement and what may come in terms of tendering that the government will presumably put in place."
Nautilus national ferry organiser Micky Smyth added: "This should be a positive move, but much will depend on the detail of how the fleet will be operated in future. We will ensure that our members’ terms and conditions will be protected in any new arrangements."
