Keppel Corporation and Sembcorp Marine merger concludes at USD 3.34 billion

Keppel Corporation Limited (Keppel) and Sembcorp Marine Ltd (Sembcorp Marine) on Tuesday (28 February) said they have concluded the Proposed Combination of Keppel Offshore & Marine Ltd (Keppel O&M) and Sembcorp Marine.

The development, valued at USD 3.34 billion (SGD 4.50 billion), received 95.28% approval from shareholders at a Sembcorp Marine Extraordinary General Meeting held on 16 February.

The combined entity, which is expected to adopt a new name and brand identity, will bring together the world-class engineering capabilities, well-established track records and reputations for quality and reliability of the two companies with complementary competencies and operations, they said.

It will be well-positioned to capture opportunities arising from decarbonisation in the oil and gas sector and from the global energy transition towards renewables, particularly in the areas of offshore wind, and new energy sources such as hydrogen and ammonia.

Discussions of the merger to create a stronger Combined Entity first started in June 2021 due to a sustained reduction in oil exploration and development activities, amongst other factors.

Related: Keppel Corporation and Sembcorp Marine sign agreements for proposed combination
Related: Keppel and Sembcorp Marine discuss potential merger in pivot to renewables sector

Photo credit: Keppel Corporation and Sembcorp Marine
Published: 2 March, 2023