South Korea’s Samsung Heavy Industries (SHI) has confirmed it is to merge with Samsung Engineering Co., Ltd. with the aim of creating a “world-class total solution provider for shipbuilding and onshore and offshore services”.
Samsung Engineering shareholders will be able to exchange their shares and receive 2.36 SHI shares for every Samsung Engineering share they currently own. The two companies plan to hold a special shareholders meeting on 27 October with the aim of completing the merger process by 1 December.
SHI says that through the merger it will gain engineering, procurement, and project management capabilities, which it describes as core strengths of Samsung Engineering, and establish a stable foundation for the growth of its offshore plant business.
The latter, meanwhile, has mainly been focused on onshore hydrocarbon plants but says it will now be able to diversify into high value-added projects such as onshore LNG and offshore plants by securing SHI’s world-class offshore plant fabrication capabilities.
The merger is likely to give the pair a solid shot at becoming a global top-tier EPC (Engineering, Procurement and Construction) company. The stated goal is to grow into a total solution provider and increase their combined revenues of US $24.75 billion (in 2013) to $39.6 billion by 2020.
Recommended Reading
Fugro’s Remote Capabilities Usher In New Age of Efficiency, Safety
2024-11-19 - Fugro’s remote operations center allows operators to accomplish the same tasks they’ve done on vessels while being on land.
Push-Button Fracs: AI Shaping Well Design, Longer Laterals
2024-11-26 - From horseshoe wells to longer laterals, NexTier, Halliburton and ChampionX are using artificial intelligence to automate drilling and optimize completions.
Companies Hop on Digital Twins, AI Trends to Transform Day-to-day Processes
2024-10-23 - A big trend for oil and gas companies is applying AI and digital twin technology into everyday processes, said Kongsberg Digital's Yorinde Lokin-Knegtering at Gastech 2024.
Afterthought to Asset: How Data has Transformed Oil, Gas Decision-Making
2024-12-05 - Digital data points have transformed from a byproduct of operations to the main driver of innovation in the energy industry, says Fabricio Sousa, president of Worley Consulting.
Liberty Capitalizes on Frac Tech Expertise to Navigate Soft Market
2024-10-18 - Liberty Energy capitalized on its “competitive edge” when navigating a challenging demand environment in third-quarter 2024, CEO Chris Wright said in the company’s quarterly earnings call.