The Norway-based exhaust gas cleaning company has announced plans to merge with an Indonesian scrubber businesses
Batam, Indonesia-based FMSI and Lysaker, Norway-based Clean Marine have entered into a term sheet with a goal of joining in a combined entity.
Clean Marine chief executive Nils Høy-Petersen said: “We are very pleased to announce the contemplated merger on the eve of IMO 2020 coming into effect.”
FMSI chief executive Nicolas Busch said: “We expect the combined company will achieve a substantial increase in market share and create a strong foundation for pioneering compliant scrubber technology for years to come.”
The combined entity will operate under the Clean Marine name and Mr Høy-Petersen will be chief executive officer of the combined company. It will have equal shareholdings from both companies’ owners.
The two companies have a total of approximately 260 scrubber system installations on their order books.
FMSI, formerly known as Feen Marine Scrubbers Inc, designs, manufactures, commissions and services scrubbers. Its systems are U-type and are available in both hybrid and open-loop configurations.
Clean Marine also manufactures scrubbers, and recently launched a simplified, compact design that can be installed with a smaller footprint and in less time than existing units. The new design is available in hybrid, open and closed loop configurations.
“This development [of the new scrubber] is in response to many shipowners that have requested both lower capex and opex levels for marine scrubbers while being able to satisfy the IMO 2020 emission level requirements.”
Pareto Securities is acting as financial advisor to Clean Marine in connection with the Merger and Thommessen as legal advisor. Arctic Securities is financial advisor to FMSI and BAHR the legal advisor.
The merger is subject to agreement on the terms of the final transaction agreements, customary due diligence reviews, any required approvals by regulatory authorities and other customary conditions.