Contemplated Merger Between Kværner ASA and Aker Solutions ASA

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OSLO, Norway, July 17, 2020 /PRNewswire/ -- Kværner ASA ("Kvaerner") and Aker Solutions ASA ("Aker Solutions") have entered into a merger plan, whereby the two entities will join forces to create a new supplier company with a stronger position as a solid execution partner, enabling sustainable, low-carbon oil and gas production, and accelerating growth in renewable energy industries. Kjetel Digre will be the CEO of the consolidated company.

Kvaerner and Aker Solutions have for many years been successful suppliers to customers operating energy production facilities, especially to oil and gas companies. Customers in this market are increasingly asking for solutions with reduced environmental footprint, and new customers ask for renewable energy solutions. "By combining the two companies and their complementary resources, we will be able to deliver a more complete offering to a global energy industry," says Leif-Arne Langøy, current chairman of Kvaerner and also the proposed chairman for the new combined company.

The merger is based upon the principle of equality. The merger will create an organisation with the required size and financial strength to compete and succeed in the growing market for renewable and sustainable energy, and generate value for shareholders, customers and society. The consolidation will take the form of a statutory merger whereby Aker Solutions ASA will absorb Kværner ASA, in accordance with the Norwegian Public Limited Liability Companies Act.

A dedicated supplier

The combined company will leverage industrial software and digital technology to optimise output and improve efficiencies in customer projects and operations. The merged entity will be a dedicated supplier that adds value by offering early front-end customer engagement, concept and system solutions for renewables and decarbonization projects in offshore wind, carbon capture, utilization and storage, electrification and emerging energy segments such as hydrogen. The combined company will utilize its global footprint in brownfield services and subsea to enter international renewables markets.