DNV & GL merger will be completed soon

Time:2013-08-09 Browse:48 Author:RISINGSUN
Formed out of the merger of the two classification societies, DNV-GL Group, which is waiting to complete the process of approvals, will be a massive entity to reckon with


Ahead of expectations, the merger of the two classification societies, Det Norske Veritas (DNV) and Germanischer Lloyd (GL) will in all probability take place within the next three months according reliable sources. The agreement had been signed for the merger of DNV and GL in December last year and the new entity is to be known as DNV-GL Group. The merged entity will thus be 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.


According to the update received, the merger process is in the culmination stage with the approval from the EU and China being expected in due course. In fact full clearance was received from Korea on June 5, being the first authority to accept the merger filing, without any subsequent conditions. Then on June 11 verbal clearance was received from the USA.


With the merger the number of employees will total 17,100 and the tonnage under the DNV GL group will be in excess of 250 million tons which will comprise of 13,000 vessels. Basically GL is strong in container and multi-purpose vessels whereas DNV is in tankers, Ro-pax and offshore vessels. Together they will be leaders in all segments of vessel except bulkers in which ClassNK leads.


The trade is being informed that no certificates will become invalid due to the merger and most probably each customer will keep their key accountant. Further, in the integration process no TOCA to DNV will be needed and all series built under current rules will continue to be built under the same rules. As all contracts validity will continue there will be no price changes. Projects will continue to be delivered within the specified time frame and budget and according to the agreed quality standards even during the integration process.


As there can be only one Recognized Organization for each flag state, after the transition period the new DNV-GL Group will cancel the IACS membership of one of the entities.