BV to acquire GL

Bureau Veritas (BV) has announced it intends to combine its strengths with those of Germanischer Lloyd (GL) and has made an offer to all GL?s shareholders to acquire their shares. Once completed, the proposed alliance will create the global leader in ship classification. The worldwide headquarters of the new division combining GL and BV marine activities will be based in Hamburg.

The BV offer results from various discussions held with major shareholders of GL in the past, and from independent market analysis that shows the economic potential of a combined GL and BV. The offer was handed over on 9 November, 2006, to GL shareholders.

“Marine classification is a growing global market in which critical size is essential to long-term success,” explains Frank Piedeli?vre, President and Chief Executive Officer of BV. “Germanischer Lloyd and Bureau Veritas are currently the two fastest growing classification companies, but they remain middle-sized players in the global market. An alliance between GL and BV would position both companies at the very forefront of the world?s leading organisations in the maritime classification sector. Such a position would be particularly important in Asia, where major investment will be needed moving forward. particularly in China, to meet the needs of the fast-developing shipping industry.”

The combined marine divisions of BV and GL would have over 13,000 vessels in class around the world, and a market share of 16% in tonnage and 26% in number of vessels. The planned alliance would become the world?s number one market operator in terms of the numbers of classified vessels, orders in hand, and turnover.

BV and GL complement each other ideally, in respect of their customer profiles ? they rarely compete with each other for the same clients ? and their geographical presence, but also with regard to their market position. GL is the world market leader in the classification of container vessels. BV is acknowledged for its more diversified and very successful role in the classification of highly technical vessels such as LNG tankers, FPSO facilities, ferries and cruise liners.

Together, BV and GL would have recourse to a more efficient worldwide service network and more human and technological resources to develop innovative technical solutions more quickly in all areas of maritime construction, inspection and certification.

Both companies are currently recruiting significantly. Fuelled by strong demand, they would need to continue investing in new human resources as they combine operations and increase their focus on quality.

BV and GL have already collaborated successfully on a number of different projects. Says Frank Piedeli?vre, “Germanischer Lloyd unites tradition and innovation in an ideal format, combining a relentless focus on quality and service as well as international success. Its good name, its worldwide reputation, its recognised technological know-how and the competence of its workforce would be integral elements for the future success of the new group. In accordance with our traditions and corporate culture, we will depend on our already successful management teams and staff on both sides to take us into a new future. Continuity and trust in our personnel are extremely important for us”.

The new marine division combining BV and GL marine activities would be managed from Hamburg, where its worldwide headquarters would be located, and where BV has had a presence since 1850. Piedeli?vre concludes. “The maritime tradition, the diversity of industries around the port of Hamburg and outstanding international contacts make Hamburg the ideal location for the common business we envisage with GL. There would be a positive long-term effect on employment for Hamburg, which city?s importance as a technological powerhouse and Europe?s ?Gateway to Asia? for the shipping industry would also be enhanced.”