Aker Solutions merging with Kværner, names new CEO

Norwegian firms Aker Solutions and Kværner have entered into a merger plan to create an optimized supplier company.

The consolidation will take the form of a statutory merger whereby Aker Solutions will absorb Kværner, in accordance with the Norwegian Public Limited Liability Companies Act.

Kjetel Digre has been appointed chief executive officer of Aker Solutions, effective 1 August 2020, and will lead the combined company.

Digre joins from Aker BP, where he held the role of senior vice president of Operations and Asset Development.

Øyvind Eriksen, chairman of Aker Solutions, said:

“Kjetel has done a remarkable job as project director for the Johan Sverdrup development, where his ability to bring together people and organizations to foster strong collaboration yielded great results. I’m confident that Kjetel will do a great job leading the new company.

“I would also like to thank Luis Araujo for his leadership as CEO of Aker Solutions for the past six years.”

In addition, Idar Eikrem, currently chief financial officer of Kvaerner, has been appointed CFO of Aker Solutions, effective 1 August.

Other key management positions will be in place during the coming weeks.

“By combining the two companies and their complementary resources, we will be able to deliver a more complete offering to a global energy industry,” says Leif-Arne Langøy, current chairman of Kvaerner and also proposed new chairman of Aker Solutions.

“The combined company will be a dedicated execution partner for delivery of complete projects for new energy production facilities, for example oil and gas production platforms or subsea systems, or offshore wind power installations,” says Kjetel Digre.

Aker Solutions had at the start of 2020 approximately 16,000 employees, and Kvaerner had about 2,800.

As an adaption to changing markets, both companies have prior to the merger commenced necessary reductions of capacities and cost.

Most of the ongoing staff reductions should complete before the merger is implemented.

The combined company will have about 15,000 employees in more than 50 locations around the world, including about 8,000 employees in Norway.

Combined 2019 revenues for the companies were about NOK 38 billion, with an EBITDA of NOK 2.7 billion.