The two companies have entered into a term sheet which is to form the basis of negotiations for a merger which Clean Marine said the intention was to complete the merger quickly.
The merged company would trade under the name Clean Marine and be headed by Nils Høy-Petersen, the current ceo of Clean Marine. It said the company would provide a fully integrated offering, including Original Equipment Manufacturer (OEM) expertise, significant capacity, fast production times, project management and global after-sales services.
It also plans to offer financing to customers through affiliates as well as options to lease equipment, noting the issues some owners have in getting competitive financing.
The two companies will have combined orders for around 260 scrubber systems.
“We are very pleased to announce the contemplated merger on the eve of IMO 2020 coming into effect,” said Høy-Petersen of Clean Marine. “The transaction will provide additional scale to support our global operations and continued investment in developing the best possible product and services for our customers.”
FMSI is 20% owned by John Fredriksen’s tanker company Frontline, which is also a major customer. The merged company will have equal shareholdings from the respective owners of Clean Marine and FMSI.
“This is a significant milestone in FMSI’s history, and we are delighted to announce this intention to combine with Clean Marine,” said Nicolas Busch, shareholder and acting ceo of FMSI. “We expect the combined company will achieve a substantial increase in market share and create a strong foundation for pioneering compliant scrubber technology for years to come.”