Oslo-based Det Norske Veritas and Hamburg-based Germanischer Lloyd have agreed to merge. The new entity will be called DNV GL Group, and will be one of the world’s leading ship classification societies and risk experts in the oil and gas, renewable energy and power sectors, and will be among the global top three in management system certification.
“The merger rests on a strong strategic rationale, and responds to the challenges of increased globalisation, rapid technological change and the need for sustainable development. Our customers will benefit from an increased service offering and global competence base as well as one of the densest networks,” says DNV’s Group CEO, Henrik O. Madsen, who will be the CEO of the combined new company. “The merger with DNV supports our long-term goal of being recognised as one of the most respected technical assurance and advisory companies in the world”, adds GL Group’s CEO, Erik van der Noordaa.
By combining the two international organisations, the new company will be one of the world’s leading independent technical service providers with state-of-the-art technological expertise and strong capabilities for innovation. With more than 17,000 employees and an extensive global network of offices, covering well over 100 countries, DNV GL Group is positioned to meet increased international competition and to serve the needs of the customers even better.
The DNV Foundation will hold 63.5 per cent, while GL’s owner Mayfair SE will hold 36.5 per cent of the shares. The new company, with a combined annual revenues of some EUR 2.5 billion will be headquartered and registered in Norway.
“We see this as a good strategic match. The two companies have a common set of values and complementary strengths. Both have strong brands and solid market positions as well as a reputation for high quality and strong integrity. Negotiations between the companies were previously conducted in 1999 and 2006 to achieve a closer level of cooperation, and I am very pleased that the timing now seems to be right (for a full merger),” says Leif-Arne Langøy, the Chairman of DNV’s Board of Directors.
“DNV is the partner of choice for GL. Besides DNV’s clear commitment to Hamburg, our decision for this partnership is based on the complementary fit between DNV and GL, as well as the joint ambition for innovation and quality of both companies. As a long-term oriented shareholder, we consider this partnership to be the continuation of our successful investment in Germanischer Lloyd.” says Guenter Herz, Chairman of Mayfair SE.
DNV GL Group will strengthen its foothold in several areas of expertise, including the maritime segment and across the entire oil & gas value chains. The Group will also be one of the global leaders in pipeline verification and asset integrity services as well as in renewable energy certification and advisory services. Moreover, it will be a strong player within power transmission and distribution as well as testing and certification services. To enhance its service offering the Group will strengthen its focus on R&D and innovation.