Keppel's associate Floatel halts proposed merger

The companies viewed that any near-term merger was unlikely.

Keppel corporation has announced that its offshore & marine unit’s associate Floatel International and Oslo-listed company Prosafe have mutually decided to discontinue the transaction in relation to their proposed merger, according to a bourse filing.

The cessation of the proposed merger was due to the companies’ view that any near-term completion of a value enhancing merger was unlikely.

The proposed merger has been entered into agreement in June 2019, where Prosafe was set to acquire all of the ordinary shares in the capital of Floatel based on a 55 : 45 exchange ratio between the companies.

The application for the merger has also been previously rejected in October 2019 by competition authorities in Norway.