Merger Mania, Part Two

In our last issue we referred to the merger mania that prevailed in the shipping industry in 1995. In particular, we considered the consolidating spirit that captured the US offshore services sector and we focused on the mergers of Tidewater with Hornbeck and Seacor with Graham. However, consolidations took place in other sectors of the shipping industry and in countries other than the US. Norwegian companies were among the most active in the M&A arena during 1995, and the mergers between Bergesen and Havtor and Wilhelmsen Lines AS (WL) and NAL caught investors’ attention worldwide.

The merger between Bergesen and Havtor (Bergesen is the acquiring company) resulted in the creation of one of the world’s largest shipping companies with a total market value in excess of $1.5 billion. On the other hand, WL’s merger with NAL resulted in one of the world’s most influential car carrying/ro-ro companies. What’s very interesting is that before Bergesen proceeded with its merger with Havtor it had become, in October 1995, the majority (50.1%) shareholder of NAL while Wilh.Wilhelmsen Limited AS (WWL) – WL’s parent company – was the second largest shareholder with 35.5%. On November 15,1995, Bergesen acquired 34% of Havtor’s shares and at simultaneously sold its interest in NAL to WWL. After these transactions took place, WWL became the owner of approximately 92% of NAL’s shares – it also acquired 5,043,876 shares through Fondsfinans – and Bergesen contacted Havtor’s Board with a proposal for a merger of the two companies. Havtor’s Board immediately accepted Bergesen’s proposal.

This is only an excerpt of Merger Mania, Part Two

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