BV to acquire Germanischer Lloyd
By IBI Magazine
French classification society Bureau Veritas (BV) has announced that it has made an offer to buy Germanischer Lloyd for an undisclosed sum. Once completed, the proposed alliance will create the global leader in ship classification.
The Bureau Veritas offer results from various discussions held with major shareholders of Germanischer Lloyd in the past, and from independent market analysis that shows the economic potential of a combined Germanischer Lloyd and Bureau Veritas. The offer was handed over on November 9, 2006, to Germanischer Lloyd shareholders.
"Marine classification is a growing global market in which critical size is essential to long-term success," explains Frank Piedeli, president and CEO of Bureau Veritas. "Germanischer Lloyd and Bureau Veritas are currently the two fastest growing classification companies, but they remain middle-sized players in the global market. An alliance between Germanischer Lloyd and Bureau Veritas would position both companies at the very forefront of the world's leading organisations in the maritime classification sector. Such a position would be particularly important in Asia, where major investment will be needed moving forward - particularly in China - to meet the needs of the fast-developing shipping industry."
The combined marine divisions of Bureau Veritas and Germanischer Lloyd would have more than 13,000 vessels in class around the world, and a market share of 16 per cent in tonnage and 26 per cent in number of vessels. The planned alliance would become the world's number one market operator in terms of the numbers of classified vessels, orders in hand, and turnover.
Bureau Veritas and Germanischer Lloyd complement each well, as they rarely compete for the same clients. Germanischer Lloyd is the world market leader in the classification of container vessels, while Bureau Veritas is acknowledged for its more diversified role in the classification of technical vessels such as Liquid Natural Gas (LNG) tankers, Floating Production Storage and Offloading (FPSO) facilities, ferries and cruise liners.
The worldwide headquarters of the new division combining Germanischer Lloyd and Bureau Veritas marine activities will be based in Hamburg, Germany.
(15 November 2006)
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