To operate under the name Clean Marine, the combined entity aims to meet the rising demand for scrubbers following the implementation of the new limits on sulphur emissions from ships that come into effect on January 1, 2020.
“We are very pleased to announce the contemplated merger on the eve of IMO 2020 coming into effect,” Nils Høy-Petersen, CEO of Norwegian Clean Marine, commented.
“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,” Nicolas Busch, shareholder and acting CEO of Indonesia-based FMSI, pointed out.
Specifically, Clean Marine would provide “a fully integrated offering, including Original Equipment Manufacturer (OEM) expertise, significant capacity, fast production times, project management and global after-sales services.”
In addition, the combined company would offer financing to its clients through affiliated companies.
By merging their businesses, the parties will be able to deliver higher manufacturing volumes and shorten delivery times further, to shipowners’ benefit. In total, the companies have approximately 260 scrubber systems on order.
What is more, the merged company will also enhance its R&D efforts to develop further green technologies for shipowners as well as for other industries.
In a separate announcement, oil tanker shipping company Frontline which controls a stake in FMSI revealed that it would own a 14.5 percent interest in the combined business following the merger.
“We are pleased to have been able to support the rapid growth of FMSI and to partake in the future growth of Clean Marine, which has seen its revenues increase fivefold year over year,” Robert Hvide Macleod, CEO of Frontline Management, noted.
Clean Marine and FMSI aim to execute definitive documentation to complete the merger swiftly. The transaction is subject to a number of conditions including relevant regulatory approvals.