Singapore companies Keppel and Sembcorp Marine have signed a merger agreement after long ongoing negotiations. Local investor to own third of the new company.
Photo: PR / Keppel
The two Singapore-based shipyards Keppel and Sembcorp Marine have completed a merger deal after the two companies initiated negotiations last year, announces Keppel in a press release.
When the merger is completed, Keppel will own 56 percent of the combined company, with Sembcorp’s shareholders taking up the remaining part. Singapore’s investment arm Temasek Holdings will be the largest shareholder in the new company with an ownership share of 33.5 percent, according to the press announcement.
”The proposed combination brings together two leading O&M companies in Singapore to create a premier player that is well positioned to address the challenges and opportunities in the evolving offshore & marine sector and the energy transition,” says Keppel CEO Loh Chin Hua in the announcement.
According to the merging parties, the merger is meant to create a stronger and combined firm able to compete on larger orders than what is currently the case for the two companies. Furthermore, they wish to utilize their experience from offshore oil and gas within the growing market of offshore sustainable energy.
The merger now needs approval from authorities and shareholders and is expected to be completed by the end of 2022.
