The merger between class titans Det Norske Veritas and Germanischer Lloyd has received final approval from competition authorities and the new company will be operational beginning September 12, 2013.
The new company, formally known as DNV GL Group, dethrones ClassNK as the world’s largest ship and offshore classification society to the maritime industry with an estimated market share of 23% to 24% in the shipping classification market in terms of tonnage, according to the Wall Street Journal. DNV GL also takes the position as one of the top three management system certification bodies in the world, according to a press statement announcing the approval merger.
Competition authorities in South Korea, the USA, the EU and China have cleared the merger between the two companies, both of which will soon celebrate 150 years of independent operations. The new company will comprise 17,000 employees across 300 sites in more than 100 countries, and have revenues of EUR 2,500 million per year.
“It is with great pride that we can now inform that this vision-driven merger for growth has been cleared by the competition authorities in all four required jurisdictions,” says Henrik O. Madsen, who will head the new group as CEO. “The merging companies both represent leading market positions, complementary commercial positions and an acknowledged reputation for advanced technology and high quality and integrity.”
Madsen continues: “DNV GL will be uniquely positioned to offer a broader set of products and services, more in-depth expertise and a denser global network of sites second to none. And importantly, there is a strong commitment by both DNV and GL to the merged company continuing to invest heavily in technology, research and innovation.
“In today’s risk-sensitive environment, a company’s failure to manage risk properly may lead to adverse events, loss of life, damage to the environment or critical business consequences, putting trust and credibility at risk. I firmly believe that DNV GL will be in a stronger position to help companies manage their challenges in the new risk reality and enable them to advance the safety and sustainability of their operations,” emphasises Madsen.
DNV, with headquarters in Oslo, Norway, is widely regarded for their expertise in the offshore energy sector, a talent developed while pioneering the development of harsh environment oil fields offshore Norway, and around the world, over the past few decades. Besides the maritime and offshore oil and gas sectors, DNV has further diversified their business over the years to cover the aviation, energy, healthcare, food and beverage, IT and telecom, petrochemical and rail sectors with offices in 100 countries.
Germanischer Lloyd, headquartered in Hamburg, Germany has a strong reputation in the maritime sector, and is known for their particular expertise in the containership sector. Through a number of acquisitions between 2004 and 2010 however, GL gained formidable strength in the offshore oil and gas sector which culminated in 2010 when they acquired London-based offshore consultancy Noble Denton.
The new company will be headquartered and registered in Norway. The DNV Foundation will hold 63.5 %, while GL’s owner Mayfair SE will hold 36.5 % of the shares.
News of the merger was first announced in December 2012. DNV GL says that the past six months laid emphasis on integration planning so that the new company is ready to start operating as one company. Former DNV and GL customers will maintain the same contact points in DNV and GL as the integration moves forward. In addition, all certificates and approvals from DNV and GL will remain valid. In the coming months, DNV GL says, the company will accelerate integration processes to ensure consistent and continuous service operations, avoiding any business interruption for customers.
“We look forward to offering the best capabilities of our respective organisations to further advance the industries we serve and make a global impact for a safe and sustainable future – a safer, smarter and greener future for our customers and society at large,” concludes Henrik O. Madsen.