Singapore’s Sembcorp Marine (Sembmarine) has agreed to a S$8.7 billion ($6.29 billion) merger with Keppel Corp’s larger offshore and marine unit, a year after the Temasek-backed firms began deal talks amid an industry downturn.
The downturn increased competition for a shrinking pool of projects, driving up industry debt levels and leading Sembmarine to raise S$3.6 billion of equity over the past two years, with strong backing by Singapore state investor Temasek.
Shares in Sembmarine, which was valued at S$4.1 billion as of Tuesday’s close, fell 11% to 11.7 Singapore cents on Thursday as trading resumed. Keppel’s shares rose 1.3%.
Read more: Reuters
