Norway-based Clean Marine and its Singapore’s Feen Marine Scrubbers (FMSI) have signed a term sheet to combine their operations and position the companies as the leading providers of exhaust gas cleaning systems (EGCS) that are called scrubbers.
Clean Marine said: “The term sheet forms the basis for the negotiations of the merger.”
Clean Marine CEO Nils Høy-Petersen will manage the combined entity that will be called Clean Marine.
Petersen said: “We are very pleased to announce the contemplated merger on the eve of IMO 2020 coming into effect.
“The transaction will provide additional scale to support our global operations and continued investment in developing the best possible product and services for our customers.”
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In addition to providing Original Equipment Manufacturer (OEM) expertise, the united company will support fast production times, project management and global after-sales services.
In collaboration with affiliated companies, the new entity will also provide financing to its ship-owners so that they can retrofit ships with minimal upfront capital expenditure.
The combined business has orders for around 260 scrubber systems.
FMSI acting CEO Nicolas Busch stated: “This is a significant milestone in FMSI’s history, and we are delighted to announce this intention to combine with Clean Marine.
“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 merger is subject to customary due diligence reviews, regulatory approvals and the final deal agreement terms.