By
Cherie Rowlands |
Norwegian global risk provider Det Norske Veritas (DNV) and Germany-based Germanischer Lloyd (GL) Group have signed a merger agreement to become one of the world’s leading ship classification societies and risk experts within the oil and gas, renewable energy and power sectors.
The newly formed company, named DNV GL Group, will strengthen its foothold in several areas including the maritime segment, the entire oil & gas value chains, pipeline verification and asset integrity services, renewable energy certification and advisory services. The company is expected to be a strong player in the power transmission and distribution, as well as testing and certification service and will also solidify its focus on R&D and innovation.
DNV Group CEO Henrik Madsen will be head of the new company. He said: “The merger rests on a strong strategic rationale and responds to challenges of increased globalisation, rapid technological change and the need for sustainable development. Our customers will benefit from an increased service offering and global competence base as well as one of the densest networks.”
GL Group CEO Erik van der Noordaa said: “The merger with DNV supports our long-term goal of being recognized as one of the most respected technical assurance and advisory companies in the world.”
The DNV Foundation will hold 63.5 per cent of shares in the new company, while GL’s owner, Mayfair SE, will have a 36.5 per cent shareholding. DNV GL Group will have a combined turnover of some €2.5 billion.
“We see this as a good strategic match. The two companies have a common set of values and complementary strengths. Both have strong brands and solid market positions as well as a reputation for high quality and strong integrity,” said DNV Board of Directors chairman Leif-Arne Langøy.
“DNV is the partner of choice for GL. 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 Mayfair SE chairman Guenter Herz. “As a long-term oriented shareholder we consider this partnership to be the continuation of our successful investment in Germanischer Lloyd.”
DNV GL Group will be headquartered and registered in Norway.