A unit of conglomerate Keppel Corp. and Sembcorp Marine—both controlled by Singapore state-linked investment firm Temasek—have agreed to merge to create the world’s largest builder of oil rigs.
—both controlled by Singapore state-linked investment firm Temasek—have agreed to merge to create the world’s largest builder of oil rigs.
The transaction was finalized nearly a year after the Singapore-listed companies announced in June 2021 that they’re discussing the possibility of combining their offshore and marine engineering businesses as both entities seek to benefit from the shift towards cleaner and renewable sources of energy.
“The signing of a win-win agreement on the proposed combination of Keppel O&M and Sembcorp Marine marks a strategic milestone for the offshore and marine sector,” Keppel CEO Loh Chin Hua said in a joint. “It brings together two leading O&M companies in Singapore to create a stronger player that can realize synergies and compete more effectively amidst the energy transition.”
Upon completion of the transaction, which is subject to approval by shareholders and regulators, Temasek will own 33.5% of the combined entity. Temasek will abstain from voting on the deal. As part of the agreement, Keppel O&M will divest its legacy oil rigs business and associated receivables into a separate entity that will be owned by investors including Keppel Corp and a unit of Temasek.
Keppel and Sembcorp Marine’s O&M businesses have been hard hit by the drastic reduction in oil and gas exploration activities in recent years as energy companies pivot towards the production of cleaner and renewable energy. The Covid-19 pandemic exacerbated the situation, driving both companies into the red last year, with a
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Buy/Sell Bitcoin, Ether and Altcoins | Cryptocurrency Exchange | BinanceBinance Bridge 2.0 is now live! It supports the cross-chain bridging of listed and unlisted assets on Nine tokens are currently supported. Learn more ⬇️
Read more »
Model with ‘world’s biggest cheeks’ latest filler leaves fans stunnedModel Anastasia Pokreshchuk already has the “biggest cheeks in the world,” but continues to pump her face with filler.
Read more »
Builders of Hope not only provides homes but pathways to successBuilders of Hope was established as a housing initiative in West Dallas and later became a nonprofit in 1998, and is one of the city's biggest developers of affordable housing.
Read more »
Biden administration commits $504M for Utah hydrogen energy plantThe Biden administration is supporting a project to create the world's largest industrial green hydrogen production and storage facility in Utah backed by a multi-million dollar commitment.
Read more »
CoinDesk Podcast Network: BREAKDOWN: The World's Biggest ‘Free Speech’ Experiment Has Begun on Apple PodcastsDoes elonmusk have the long-term view and the willingness to endure financial challenges to actually go after the root causes of Twitter’s problems? NLW explores Musk’s free speech goals and the financial hit he might take to achieve them.
Read more »
Cirque Du Soleil's LA Comeback (Or, How To Train As A Circus Performer, Even In A Pandemic)Cirque Du Soleil just started a multi-year residency in Los Angeles at L.A. Live. We look at how you become a Cirque performer, their current show Ovo, and more.
Read more »