Norwegian firms Aker Solutions and Kværner announce merger plans

Aker Solutions, Kværner merger : Norwegian oilfield service companies Aker Solutions and Kværner are considering a merger of equals to create an optimized supplier company.

In this connection, the parties have entered into a merger plan.

The combined entity, which will operate as Aker Solutions, is expected to gain a stronger position as an execution partner to facilitate sustainable, low-carbon oil and gas production, and fast-tracking growth in renewable energy industries.

According to the companies, the enlarged entity will tap into industrial software and digital technology to streamline output and boost efficiencies in customer projects and operations. The merged entity is expected to be a dedicated supplier that will add value by providing early front-end customer engagement, concept, and system solutions for renewables and decarbonization projects across offshore wind, carbon capture, electrification, utilization and storage, and also emerging energy segments like hydrogen.

Furthermore, the combined entity will leverage its global presence in brownfield services and subsea to foray into international renewables markets.

The merged entity will also carry out fabrication at its own facilities or in cooperation with partners across the world. The solutions and technologies of the combined entity are said to provide a stronger offering of renewable energy solutions​.

Kjetel Digre – Aker Solutions onboarding CEO and also the proposed CEO for the combined company, commenting on the Aker Solutions, Kværner merger, said: “The combined entity will be a dedicated execution partner for delivery of complete projects for new energy production facilities, for example oil and gas production platforms or subsea systems, or offshore wind power installations.

“We will continue to finetune and improve our internal capacities, to ensure that we always have a sound capacity utilisation. In addition to our own capabilities, we will continue to collaborate closely with partners.”

The merger is estimated to result in nearly 4,000 job cuts across the two firms before their transaction is closed to have a workforce of around 15,000 employees.

Commenting on the Aker Solutions, Kværner merger, Karl-Petter Løken – President and CEO of Kvaerner, said: “Combining Aker Solutions and Kvaerner in one company will bring together expertise and innovative spirit of two strong and compatible cultures, to create value for customers, shareholders, societies and employees. This is the right move for the future.”

In a related development, Aker Solutions said that it plans to spin off its wind development business and also the carbon capture technology business to its shareholders in two separate companies. Aker Solutions said that it will be an alliance partner and preferred supplier to the two new companies to generate revenue and customer value within the wind and carbon capture, utilization and storage markets.