Bermuda-registered OSV owner Nordic American Offshore (NAO) announced on 23 November a planned business combination with Canadian OSV operator Horizon Maritime has been shelved.
A statement to shareholders on NAO’s website said the merger was shelved because “it has been decided not to move forward at this time.”
NAO announced on 1 October it had entered into a memorandum of understanding (MoU) over a combination with Horizon Maritime, with support from Canadian businessman and investor John Risley and his companies. Subject to due diligence and execution of a binding agreement by 31 October, NAO shareholders would have held 48% of the combined business and Horizon shareholders 52%.
Mr Risley and NAO’s executive chairman Herbjorn Hansson said at the time “The two companies are geographically complementary with focus on each side of the North Atlantic basin.”
An update was issued on 31 October stating “The parties are now in agreement on the main terms of the combination. However, diligence processes are ongoing. The companies look forward to signing a binding agreement as soon as practically possible.”
The 23 November statement noted that a Nordic subsidiary, Nordic Canadian Shipping, had been engaged in Eastern Canada during the 1990s at the Cohasset Panuke oilfield, which ceased production in 1999.