DNV and GL announce merger agreement
DNV and GL have signed a merger agreement to form the DNV GL Group that will have a combined turnover of $3.32 billion.
The new company, with over 17,000 employees, expects to be one of the world’s largest ship classification societies and risk experts in the oil and gas, renewable energy and power sectors. The DNV Foundation will hold 63.5% of the shares, while GL's owner Mayfair SE will hold the 36.5% stake.
The merger rests on a strong strategic rationale, and responds to the challenges of increased globalisation, rapid technological change and the need for sustainable development, according to DNV's Group CEO, Henrik O. Madsen, who will be the CEO of the new company.
Speaking at the World Future Energy Summit Conference in Abu Dhabi, DNV Group chief technology and sustainability officer, Bjorn K. Haugland said, “Our customers and partners will benefit from the combined leading technological expertise and enhanced innovation capabilities provided by the two companies’ highly skilled employees.
The DNV GL Group will strengthen its foothold in several areas of expertise, including the maritime segment and across the entire oil & gas value chains. The 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. Moreover, it will be a strong player within power transmission and distribution as well as testing and certification services. To enhance its service offering, the DNV GL Group will also strengthen its focus on R&D and innovation.”
The transaction requires the approval of a number of competition authorities, which the company expects to receive during 2013. Until then, DNV and GL will remain independent in their actions, opinions and services and will continue to compete on normal terms.
The merger with DNV supports GL’s long-term goal of being recognised as one of the most respected technical assurance and advisory companies in the world, added GL Group's CEO, Erik van der Noordaa.
The merger announcement follows DNV’s acquisition of the controlling stake in the Netherlands-based KEMA last year to create DNV KEMA, an energy consulting, testing and certification company. DNV also purchased the US Wind energy consultants Global Energy Concepts and solar firm Behnke, Erdman and Whitaker Engineering in 2010.