DNV-GL Merger: Deal Closure Could Happen This Month

dnv gl group mergerOslo-based classification society DNV reports they are very close to completing their merger with Hamburg-based Germanischer Lloyd (GL), a deal announced in December of last year.

“We have achieved clearance from the competition authorities in three of the four required jurisdictions: South Korea, the US and the EU. We hope to receive clearance from Chinese competition authorities shortly and are, pending their decision, currently looking at officially closing the merger transaction sometime this month,” saidĀ DNV Group Chief Executive Officer Henrik O. Madsen in an emailed statement.

Thomas Vogth-Eriksen, DNV Group’s Chief Financial Officer added,

“Given the timeline, the past six months laid emphasis on integration planning so that we are ready to start operating as one company as soon as possible. This will allow our customers to benefit from dealing with a stronger company without experiencing disruption to their business dealings with DNV or GL.”

DNV reported strong 1H 2013 earnings with nominal revenue growth of 13% over prior year to NOK 6,665 million. Net profits for the period reached NOK 417 million, up from NOK 202 million in the previous year.

As the maritime industry struggles with overcapacity, DNV’s business in the oil and gas sector is picking up the slack. Ā DNV notes, “Direct revenue from oil and gas activities is now almost the same as the revenue generated from maritime-related services.”

DNV notes their maritime-related priorities are “to focus on technology innovation, efficient energy use and LNG as shipping fuel to help its customers address these challenges.”