Det Norske Veritas and Germanischer Lloyd plan merger

The transaction, assuming it is cleared for approval by antitrust authorities, would make the new entity, DNV GL Group SA, one of the world’s leading ship classification societies and risk experts in the oil and gas, renewable energy and power sectors.

Det Norske Veritas (DNV, Hamburg, Germany) and Germanischer Lloyd (GL, Oslo, Norway) announced on Dec. 20 their intention to merge. The transaction, assuming it is cleared for approval by antitrust authorities, would make the new entity, DNV GL Group SA, one of the world’s leading ship classification societies and risk experts in the oil and gas, renewable energy and power sectors, and would place it among the top three management system certification societies, behind SGS SA (formerly Société Générale de Surveillance, Geneva, Switzerland) and Bureau Veritas SA (Neuilly-sur-Seine, France).

The new company, with a combined turnover of some €2.5 billion ($3.3 billion), will be headquartered and registered in Norway and will field more than 17,000 employees in an extensive network of offices worldwide. The DNV Foundation will hold 63.5 percent of the shares, while GL’s owner, Mayfair SE, will hold 36.5 percent.

“The merger rests on a strong strategic rationale and responds to the challenges of increased globalization, rapid technological change and the need for sustainable development. Our customers will benefit from an increased service offering and global competence base as well as one of the densest networks,” says DNV’s group CEO, Henrik O. Madsen, who will be DNV GL’s CEO.

“The merger with DNV supports our long-term goal of being recognized as one of the most respected technical assurance and advisory companies in the world,” adds GL Group’s CEO, Erik van der Noordaa.

Leif-Arne Langøy, DNV’s board chairman, adds, “We see this as a good strategic match. The two companies have a common set of values and complementary strengths. Both have strong brands and solid market positions as well as a reputation for high quality and strong integrity. There were negotiations between DNV and GL both in 1999 and in 2006 on closer cooperation. I am very pleased that the timing now seems to be right.”

Although its global headquarters will be in Høvik, outside of Oslo, DNV GL’s maritime business unit will be based in Hamburg, Germany. The oil-and-gas sector will be serviced from Høvik, and the energy group will operate from Arnhem, The Netherlands, with a strong hub for renewables in Bristol, U.K. The company’s business assurance arm will be stationed in Milan, Italy.