Sembcorp Marine 'in a better position' with Keppel merger

This amidst the improvement in the offshore and marine industry.

Sembcorp Marine maintained that the proposed combination will improve their firm’s operations and finances even as the situation in the offshore and marine (O&M) industry are getting better.

Following its merger with Keppel O&M, shareholders asked if Sembcorp Marine will operate and seize the upturn of the O&M industry on its own. 

But Sembcorp said it will remain competitive and play a significant role in the energy transition through its proposed combination with Keppel O&M.

“Through the Proposed Combination, Sembcorp Marine will be better positioned, both operationally and financially, to weather future market volatility and capture growth opportunities,” it said.

Meanwhile, the firm also disclosed that the extraordinary general meeting for Sembcorp Marine shareholders to vote on the Sembcorp Marine Scheme and the Proposed Combination via Keppel O&M Scheme will possibly be convened in the fourth quarter of 2022.

Before this, Sembcorp Marine and Keppel will need to comply with anti-trust and other procedures in consultation with the relevant regulatory bodies in the various jurisdictions in which both companies have operations.

As a shareholder of both Sembcorp Marine and Keppel, Temasek fully backed the proposed combination.

READ MORE: After merger, Keppel, Sembcorp Marine to see long-term, short-term benefits