The deal, which was agreed by both companies’ boards will create a new company operating under the name ‘Subsea 7’. Both boards believe that the combined entity will be better able to meet the growing size and technical complexity of subsea projects, driven by the demand to access ever more remote reserves in increasingly harsh environments.
The new company’s market capitalisation stands at US$ 5.4 billion and employs 12,000 people worldwide. This will give the company an enhanced local presence in all major offshore oil and gas regions.
With its combined assets the new entity will be able to offer engineering, procurement, installation and commissioning services for subsea umbilical, riser and flowline projects (SURF), conventional field development and life-of-field services (including inspection, repair and maintenance, survey and decommissioning).
The new entity will also be the proud owner of a diversified fleet of 43 surface ships offering greater flexibility.
Annual synergies of at least US$ 100 million are expected to be realised within three years of completion from overhead and operating cost savings, more efficient supply chain management and the benefits of an enlarged global fleet.
Acergy Chairman, Sir Peter Mason KBE said, “This combination is an exciting opportunity for our shareholders, our clients and our people. The combined entity will have a stronger balance sheet, enabling efficiencies of scale and capital deployment. The enhanced operational capability will produce significant benefits for our clients and provide substantial growth opportunities for our people, which is expected in turn to deliver greater value creation for our shareholders.”