Norwegian offshore support vessel firms Solstad Offshore and REM Offshore are to merge, creating a company with 62 vessels.
Solstad will offer new shares to fund the deal, with REM's shareholders due to receive a share of them.
"The offshore service vessel (OSV) industry is undergoing a period of great uncertainty," says Lars Peder Solstad, CEO of Solstad. "Reduced spending across the upstream value chain has contributed to the current overcapacity, adversely impacting dayrates and utilization.
"The OSV industry's fragmented structure is further compounding these negative effects. Solstad and REM both see the need to create larger entities with financial and operational strength to weather the downturn. The combination of Solstad and REM is one step in the right direction, but there remains a strong rationale for further consolidation."
After the Merger, Solstad will retain its Skudeneshavn head office, from which the combined fleet of CSV vessels will be operated.
The combined fleet of PSV vessels will be operated from the current REM head office in Fosnavåg.
"The merger is a necessary structural measure in today's offshore service vessel (OSV) market, which will enable the combined company to achieve significant synergies through more efficient operations and a lower cost base.
"The combination of Solstad's, REM's and Aker's industrial expertise, M&A capabilities and financial strength will provide a strong platform through Solstad for further development of the OSV industry," says Øyvind Eriksen, President and CEO of Aker.
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