Solstad Offshore merger with REM Offshore and will establish one of the largest Norwegian and world companies in the industry. The Aker boss, Kjell Inge Rokke, acquired the major shareholding stake in Solstad Offshore last month, after several times blocked restructuring plans of REM Offshore and pushed both companies to merge and create flexible and optimized fleet and large portfolio of expertise in the sector. After the merger, the combined company will form two basic divisions, one. operating the combined fleet of CSV vessels and another one operating the combined fleet of PSV vessels. Solstad will retain its Skudeneshavn head office, from which the fleet of CSV vessels will be operated, while the REM head office in Fosnavag will handle operations of PSV vessels fleet.
“The offshore service vessel industry is undergoing a period of great uncertainty. Reduced spending across the upstream value chain has contributed to the current overcapacity, adversely impacting dayrates and utilisation”, said the CEO of Solstad, Lars Peder Solstad. “The OSV industry’s fragmented structure is further compounding these negative effects. Solstad and REM both see the need to create larger entities with financial and operational strength to weather the downturn. The combination of Solstad and REM is one step in the right direction, but there remains a strong rationale for further consolidation”, added he.
The merger is expected to be completed until the beginning of December this year and is premised upon the completion of REM’s restructuring. Solstad is also going through an extensive restructuring.