Keppel, Sembcorp Marine merger deal to create world’s biggest oil rig builder

Keppel, Sembcorp Marine merger deal to create world’s biggest oil rig builder

Sembcorp Marine has agreed to merge with Keppel’s subsidiary in a deal that will create the world’s biggest builder of oil rigs and push the business further into renewables and alternative energy solutions. The pair are forming what could be one of the world’s largest offshore energy players worth $6.3 billion.

Sembcorp Marine and Keppel Offshore & Marine will be wholly owned by a new holding entity, which will be listed on the Singapore stock exchange, the two companies said in a widely anticipated joint statement Wednesday. A shareholder meeting is expected to be held in the fourth quarter to seek approval for the transaction, which is subject to various regulatory sign offs.

“The signing of a win-win agreement on the proposed combination of Keppel O&M and Sembcorp Marine marks a strategic milestone for the offshore and marine sector,” Keppel Chief Executive Officer Loh Chin Hua said. “It brings together two leading O&M companies in Singapore to create a stronger player that can realise synergies and compete more effectively amidst the energy transition.”