---

Det Norske Veritas (DNV) and Germanischer Lloyd (GL) are to merge in a deal that is set to create one of the world’s leading ship classification societies and risk experts in the oil and gas, renewable energy and power sectors, and among the global top three within management system certification.

As part of the agreement signed by both parties, the DNV Foundation will hold 63.5 % of the merged company, while GL’s owner, Mayfair SE, will hold 36.5 % of the shares. The new company, with a combined turnover of some EUR 2.5 billion, will be headquartered and registered in Norway.

“The merger rests on a strong strategic rationale, and responds to challenges of increased globalisation, rapid technological change and the need for sustainable development. Our customers will benefit from an increased service offering and global competence base as well as one of the densest networks,” said DNV’s Group CEO, Henrik O. Madsen, who will be the CEO of the combined new company.

“The merger with DNV supports our long-term goal of being recognized as one of the most respected technical assurance and advisory companies in the world”, commented GL Group CEO, Erik van der Noordaa.

"By combining the two international organisations, the new company will be one of the world’s leading independent technical service providers with state-of-the-art technological expertise and strong capabilities for innovation. With more than 17.000 employees and an extensive global network of offices, DNV GL Group is positioned to meet increased international competition and even better serve the needs of the customers," DNV said in a statement.

“We see this as a good strategic match. The two companies have a common set of values and complementary strengths. Both have strong brands and solid market positions as well as a reputation for high quality and strong integrity. There were negotiations between DNV and GL both in 1999/2000 and in 2006 about closer cooperation. I am very pleased that timing now seems to be right,” said Leif-Arne Langøy, the Chairman of DNV’s Board of Directors.

“DNV is the partner of choice for GL. Besides DNV’s clear commitment to Hamburg our decision for this partnership is based on the complementary fit of DNV and GL as well as the joint ambition for innovation and quality of both companies. As a long-term oriented shareholder we consider this partnership to be the continuation of our successful investment in Germanischer Lloyd,” commented Guenter Herz, Chairman of Mayfair SE.

"DNV GL Group will strengthen its foothold in several areas of expertise, including the maritime segment and across the entire oil & gas value chains. The group will be one of the global leaders in pipeline verification and asset integrity services as well as in renewable energy certification and advisory services. Moreover, it will be a strong player within power transmission and distribution as well as testing and certification services. To enhance its service offering the DNV GL Group will strengthen its focus on R&D and innovation," DNV said.

The maritime business unit will be headquartered in Hamburg, Germany. Oil & Gas will be headquartered at Høvik, Norway, while Energy will be headquartered in Arnhem, the Netherlands and Business Assurance in Milan, Italy.

DNV GL Group will be organized as a Norwegian limited company (AS). The transaction requires approval from competition authorities.