DNV and GL Merger

During the End of 2012 GL and DNV announced their agreement to merge. The new entity will be called DNV GL Group. The merge will create the third-largest certification, inspection and testing business for industries such as shipping, oil and gas, and renewable energy. Its global headquarters will be at Høvik outside of Oslo. The merger may be effective by the second quarter.

2013.02.20 - DNV and GL Merger

According to DNV’s Group CEO, Henrik O. Madsen, the merger rests on a strong strategic rationale, and responds to challenges of increased globalisation, rapid technological change and the need for sustainable development. DNV’s Group CEO, Henrik O. Madsen, will be the CEO of the combined new company.

By combining the two international organisations, the new company will be one of the world’s leading independent technical service providers with state-of-the-art technological expertise and strong 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 the customers.

The DNV Foundation will hold 63.5 %, while GL’s owner Mayfair SE will hold 36.5 % of the shares. The new company, with a combined turnover of some EUR 2.5 billion, will be headquartered and registered in Norway.

2013.02.20 - DNV and GL Merger Figure 2

From left to right: Hinrich Stahl, Maryland GmbH, Erik van der Noordaa, CEO GL Group and Henrik O. Madsen, CEO DNV.

According to Leif-Arne Langøy, the Chairman of DNV’s Board of Directors, the two companies have a common set of values and complementary strengths. Both have strong brands and solid market positions as well as a reputation for high quality and strong integrity. There were negotiations between DNV and GL both in 1999/2000 and in 2006 about closer cooperation.

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 strengthen its focus on R&D and innovation.

The maritime business unit will be headquartered in Hamburg, Germany, while maintaining its commitment to the Norwegian maritime cluster. Oil & Gas will be headquartered at Høvik, Norway. The Energy unit will be headquartered in Arnhem, the Netherlands and Business Assurance in Milan, Italy.

DNV GL Group will be organised as a Norwegian limited company (AS). The transaction requires approval from competition authorities.

Sources: DNV, GL

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