Norwegian energy services giant Aker Solutions on Tuesday completed its previously announced merger with compatriot Kvaerner, and has pledged that the new company would work on speeding up the transition to sustainable energy production.
"It is an industry milestone when Aker Solutions now completes the merger with Kvaerner. The merged company becomes one of the world’s leading suppliers of solutions to reduce climate gas emissions from oil and gas installations, and for delivery of complete renewable energy production facilities," Aker Solutions said.
The two Norwegian offshore energy services firms said Monday that all conditions had been met for their proposed merger to proceed, and the merger, originally proposed in June, was completed on Tuesday.
Under the terms, Aker Solutions absorbed all the assets, rights, and obligations of Kvaerner and Kvaerner was dissolved.
Eligible shareholders received 0.8183 Consideration Share for each share in Kvaerner they own as at the expiry of the date of registration of the completion of the merger.
Wednesday, November 11 is be the first day for the Aker Solutions share to be traded after completing the merger with Kvaerner. The combined company had about NOK 38 billion in pro forma revenues in 2019 and will employ approximately 15,000 employees in more than 20 countries.
In a statement on Wednesday, Aker Solutions said: "Over the past 50 years, Aker Solutions and Kvaerner delivered many of the major breakthroughs in the global oil and gas industry. This track record includes concrete technology for offshore platforms to operate safely even in harsh weather conditions, or floating platforms and subsea systems for operations in ultra-deep waters. Internationally, the company is recognized for its technical expertise and capabilities to deliver complete oil and gas projects, including engineering, project management, fabrication and installation."
"In recent years, Aker Solutions and Kvaerner has also executed work for customers within carbon capture, offshore wind power, hydrogen production and other renewable industries. The company was the key contractor for delivering the carbon capture technology test center at Mongstad, Norway. Currently, it is delivering to Equinor the Hywind Tampen development, the world’s largest project with floating platforms for offshore wind power. The company’s extensive electrification, maintenance and modifications business is also increasingly engaged in projects to reduce carbon emissions from existing plants and offshore installations," it added.
Aker Solutions CEO Kjetel Digre, who took over as CEO in August, having previously worked for Aker BP, said: "We see that our ability to deliver predictably with respect to quality, schedule and costs is equally important for low-carbon projects and renewable energy developments. Over the past few years, we have started to build up our business in these segments, and we will continue to grow this activity further in the new organization. Our strategy as a supplier is to enable our customers and the society to accelerate the transition to sustainable energy production."