DNV and GL to merge and collaborate on sustainable development

An agreement has been signed to merge the companies DNV and GL to form the DNV GL Group. It will be one of the world's leading ship classification societies and risk experts in the oil and gas, renewable energy and power sectors, and among the global top three in management system certification.

The merger rests on a strong strategic rationale, and responds to the challenges of increased globalisation, rapid technological change and the need for sustainable development, according to DNV's Group CEO, Henrik O. Madsen, who will be the CEO of the new company. The merger with DNV supports GL’s long-term goal of being recognised as one of the most respected technical assurance and advisory companies in the world, added GL Group's CEO, Erik van der Noordaa.

By combining these two international organisations, the new company will be one of the world's leading independent technical service providers with technological expertise and capabilities for innovation. With more than 17,000 employees and an extensive global network of offices, DNV GL Group is positioned to meet increased international competition and even better serve the needs of customers.

The DNV Foundation will hold 63.5% of the shares, while GL's owner Mayfair SE will hold 36.5%. The new company, with a combined turnover of some EUR2.5 billion, will be headquartered and registered in Norway.

Speaking on the sidelines of the World Future Energy Summit Conference, DNV Group Chief Technology & Sustainability Officer Bjorn K. Haugland commented, “Our customers and partners will benefit from the combined leading technological expertise and enhanced innovation capabilitiesprovidedby the two companies’ highly skilled employees.The DNV GL Group will strengthen its foothold in several areas of expertise, including the maritime segment and across the entire oil & gas value chains. The Group will be one of the global leaders in pipeline verification and asset integrity services as well as in renewable energy certification and advisory services. Moreover, it will be a strong player within power transmission and distribution as well as testing and certification services. To enhance its service offering, the DNV GL Group will also strengthen its focus on R&D and innovation.”

He added, “Once merged, we look forward to offering the best capabilities of our respective organisations to further advance the industries we serve. However, the transaction requires the approval of a number of competition authorities, which we hope to receive sooner rather than later and certainly during 2013. Until then, DNV and GL will remain completely independent in their actions, opinions and services and will continue to compete on normal terms.”

The merger announcement follows DNV’s acquisition of the controlling stake in the Netherlands-based KEMA last year to create DNV KEMA, a world-leading energy consulting, testing and certification company.  DNV also purchased the US Wind energy consultants Global Energy Concepts and solar firm Behnke, Erdman and Whitaker Engineering in 2010

DNV has assisted Masdar on solar energy  and Clean Development Mechanism-related projects and health and safety assessments, and sees large potential in the Masdar initiatives. The risk management services foundation currently has 250 employees in the Middle East, across 12 offices in eleven countries, and supplies a full range of technical and advisory services in multiple fields. It set up its first office in the UAE 36 years ago.