Marine Log

November 14, 2006

Bureau Veritas makes offer for Germanischer Lloyd

Bureau Veritas (which itself is 99% owned by France's Wendel Investissement) says it has has made an offer to all Germanischer Lloyd shareholders to acquire their shares.

GL is owned by about 50 shareholders. They include shipowners, shipyards, equipment manufactuers, banks and insurers.

Bureau Veritas says the proposed alliance would "create the global leader in ship classification."

The worldwide headquarters of the new division combining Germanischer Lloyd and Bureau Veritas marine activities wouldl be based in Hamburg.

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

"Marine classification is a growing global market in which critical size is essential to long-term success," explains Frank Piedelievre, President and Chief Executive Officer of Bureau Veritas. "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 Germanischer Lloyd and Bureau Veritas would position both companies at the very forefront of the world's leading organizations 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 Bureau Veritas and Germanischer Lloyd would have over 13,000 vessels in class around the world, and a market share of 16 per cent in tonnage and 26 per cent 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.