Subsea 7 announces acquisition of certain businesses of Emas Chiyoda Subsea
Subsea 7 S.A. (Oslo Børs: SUBC, ADR: SUBCY) on June 29 announced the acquisition of certain businesses of EMAS Chiyoda Subsea (ECS). The acquisition, under a US bankruptcy code Chapter 11 Plan of Reorganisation, was confirmed by the U.S. Bankruptcy Court for the Southern District of Texas and became effective on 29 June 2017.
Jean Cahuzac, CEO, said: “In a challenging business environment our differentiated offering and strong capital discipline has enabled us to pursue this opportunity. This targeted investment enables Subsea 7 to accelerate its strategy to provide a market leading service in the Middle East.
The addition of people, local presence and client relationships of ECS to our market leading SURF and Conventional capability expands our global presence. As a result of this transaction we have significantly increased our presence in the Middle East, assuming a long-term agreement (LTA) and three current projects in Saudi Arabia, in consortium with L&T Hydrocarbon Engineering (L&T).
Subsea 7 and Chiyoda Corporation, one of the Plan of Reorganisation sponsors and a previous shareholder of ECS, have started discussions regarding possible collaboration in engineering and technology initiatives to provide solutions to our clients.”
The financial results of the acquired entities will be consolidated within Subsea 7’s SURF and Conventional Business Unit effective 29 June 2017.