DNV and GL to merge

Source: Internet
(Dec 21 2012)

DNV and Germanischer Lloyd (GL), two conglomerates offering oil and gas risk management services and ship classification, have agreed to merge.
The combined company, DNV GL Group, will be 63.5% owned by the DNV Foundation, and 36.5% owned by GL’s current owner Mayfair Vermögensverwaltung.
GL was threatened with a hostile takeover by Paris-based Bureau Veritas in Autumn 2006, but the bid was defeated when GL was acquired by Hamburg entrepreneur Günter Herz, who placed the shares in his family company Mayfair Vermögensverwaltung.
“The merger rests on a strong strategic rationale, and responds to challenges of increased globalisation, rapid technological change and the need for sustainable development," said Henrik Madsen, DNV Group CEO.
“The merger with DNV supports our long-term goal of being recognised as one of the most respected technical assurance and advisory companies in the world”, said GL Group CEO, Erik van der Noordaa.
The combined company will have over 17,000 employees, and a combined turnover of €2.5 bill. It will be headquartered and registered in Norway (Høvik, just outside Oslo), where DNV's is headquartered.
The maritime business unit will be housed in Hamburg, Germany. However, the tanker competence department will remain in Høvik, while the energy business unit will be based in Arnhem, the Netherlands.
“We see this as a good strategic match. The two companies have a common set of values and complementary strengths," said Leif-Arne Langøy, chairman of DNV’s board.
"There were negotiations between DNV and GL both in 1999/2000 and in 2006 about closer co-operation. I am very pleased that timing now seems to be right," Langøy said.
"Besides DNV’s clear commitment to Hamburg our decision for this partnership is based on the complementary fit of DNV and GL, as well as the joint ambition for innovation and quality of both companies," said Herz.
DNV GL plans to strengthen its foothold in several areas of expertise, including the maritime segment and across the entire oil & gas value chains. The new Group will be one of the global leaders in pipeline verification and asset integrity services, as well as in renewable energy certification and advisory services, the companies claimed.
The new entity will be set up, as a Norwegian limited company (AS). However, the proposed merger still requires approval from competition authorities, which the Group hopes to achieve during the first half of next year.
Meanwhile, DNV’s tanker department head Jan Koren is due to retire in March next year. He will be replaced by Hakon Skaret.