Boskalis-Smit merger back on

Dredging company Boskalis Westminster and maritime services company Smit have announced a friendly merger just over a year after Smit rejected a hostile bid from Boskalis.

The new deal will see Boskalis acquire Smit for € 60 per share, valuing the company at € 1,06 billion. Last September's hostile offer was pitched at € 62,50 per share, 4,2% higher.

A crucial difference between today's proposal and the 2008 offer is that Boskalis says it will continue with all of Smit's activities and maintain the Smit brand. In contrast, last September's plan, Boskalis was only going to keep Smit's heavy lift, transport and salvage arm. Two other divisions - towage and operating oil & gas terminals were to be sold-off.

Boskalis CEO Peter Berdowski said, "Combining our companies creates a Dutch maritime player of a global scale. This merger fits excellently with out strategy aimed at reinforcing and expanding our maritime services."

The merger is being supported in principle by both companies' Management and Supervisory Boards. However, Smit has appointed RBS as a financial advisor, and says it will take a view on the € 60 per share level of Boskalis' offer at a later date.

Notwithstanding this, shareholders representing 44% of Smit's ownership have accepted the offer.

The deal is subject to regulatory approval and consultation with workers' councils and unions. It is expected to close in the first half of next year.