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Oil services firm Aker Solutions to merge with Kvaerner, names new CEO

Credit: REUTERS/Ints Kalnins

OSLO, July 17 (Reuters) - Norwegian oil service providers Aker Solutions AKES.OL and Kvaerner KVAER.OL will merge to strengthen their base in the global energy industry, including renewable energy, both companies said on Friday.

Aker Solutions said Kjetel Digre has been appointed as its new chief executive officer and will lead the merged company.

Digre plans to cut the combined fixed cost level by about 1.5 billion Norwegian crowns ($161.32 million) on annualised basis from 2019 to 2021, and will also slash combined workforce to 15,000 from 18,800.

Both firms are controlled by Norwegian billionaire Kjell Inge Roekke.

($1 = 9.2981 Norwegian crowns)

(Reporting by Nerijus Adomaitis, Editing by Sherry Jacob-Phillips)

((nerijus.adomaitis@thomsonreuters.com; +47 9027 6699; Reuters Messaging: nerijus.adomaitis.thomsonreuters@reuters.net))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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