Norway-based Clean Marine and its Singapore’s Feen Marine Scrubbers (FMSI) have signed a term sheet to combine their operations and position the companies as the leading providers of exhaust gas cleaning systems (EGCS), reports Seatrade Maritime News.
Clean Marine offers OEM expertise
The combined entity, which will operate under the name Clean Marine, will provide a fully integrated offering, including Original Equipment Manufacturer (OEM) expertise, significant capacity, fast production times, project management and global after-sales services.
It will also offer financing to its customers through affiliated companies.
The Merger will better position Clean Marine to fulfil the needs of its customers and meet the rising demand for EGCS following the implementation of the new limits on sulphur emissions that come into effect on January 1, 2020.
Price volatility, large fuel spreads and fuel quality concerns are causing owners who had previously not adopted a strategy for compliance to invest in EGCS.
Approximately 490 Clean Marine employees will serve clients around the world from offices in Oslo, Norway; Varna, Bulgaria; Singapore; Houston, USA; and Batam, Indonesia.
“We are very pleased to announce the contemplated merger on the eve of IMO 2020 coming into effect,” said Høy-Petersen of Clean Marine.
He added, “The transaction will provide additional scale to support our global operations and continued investment in developing the best possible product and services for our customers.”
Equal shareholdings from Clean Marine and FMSI
FMSI is 20% owned by John Fredriksen’s tanker company Frontline, which is also a major customer. The merged company will have equal shareholdings from the respective owners of Clean Marine and FMSI.
“This is a significant milestone in FMSI’s history, and we are delighted to announce this intention to combine with Clean Marine,” said Nicolas Busch, shareholder and acting CEO of FMSI.
“We expect the combined company will achieve a substantial increase in market share and create a strong foundation for pioneering compliant scrubber technology for years to come,” he added.
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Source: Seatrade Maritime News