The DNV and GL merger

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Adam Barber
January 4, 2013
This content is from our archive. Some formatting or links may be broken.
This content is from our archive. Some formatting or links may be broken.
The DNV and GL merger

For many, a new year isn’t just a time for reflection. It’s also a time for change.

That’s certainly the case for the 17,000+ staff that now find themselves working for a new entity, called DNV GL Group.

It’s an entirely new company that merges DNV and GL and that only came into being on 20th December 2012.

That was the date when Erik van der Noordaa, Chief Executive, GL Group and Henrik Madsen, Chief Executive, DNV Group stood side by side and shared their collective ambition for quality, innovation and growth.

It was also the date when many others within the market were caught napping – as, in an instant, the two former competitors created a top three global certification, testing and consultancy powerhouse.

It goes without saying then, that as far as mergers go, this was/is a big deal.

And, while the transaction still requires the approval from the competition authorities, it’s certainly no mean feat to have gotten it all wrapped up before the Christmas break.

Crucially though, for those working on the inside, the real legwork has only just begun.

Henrik Madsen, the newly emerged group Chief Executive, has already set out a vision to target 2013 sales of about $3.6 billion – a 10% uptick on combined company sales achieved in the past twelve months alone.

What’s more, it’s an annual growth trajectory that he’s expecting to repeat throughout 2014 and 2015, without even breaking sweat.

All in all, it’s a confident pitch. And certainly one that capitalises on a growing demand for international testing and certification services within shipping, oil and gas, and perhaps most pertinently, within renewables. Something that sets the firm on solid ground as the new energy revolution really begins to boom.

However, as many within the market return to work and as the New Year really gets underway, it’d be easy to underestimate the complexity of the integration.

And of the work required by both firms in order to make this vision achievable, during the weeks and months ahead.

After all, it’s no secret that competition between the firms and their respective divisions has always run high.

And that for many investors (particularly those working within renewable energy), it was only ever either one of these two former firms that were ever really considered bankable. Much to the chagrin of others.

This deal then, upsets the apple cart.

And, while it’s driven by market consolidation, increasingly competitive pricing and the need to establish a truly global capability and presence, there’s no denying that, if it works, the new firm will be an innovative and imminently capable force.

Time then, for some smart leadership, some clarity of vision and some dynamic, creative thinking. Over 17,000 staff are now signed up and ready to get back to work.

And work, they must. With some increasingly ambitious specialised sector upstarts still rising steadily through the ranks, the success or failure of the DNV GL Group’s workforce will ultimately dictate just how much can be achieved.

For many, a new year isn’t just a time for reflection. It’s also a time for change.

That’s certainly the case for the 17,000+ staff that now find themselves working for a new entity, called DNV GL Group.

It’s an entirely new company that merges DNV and GL and that only came into being on 20th December 2012.

That was the date when Erik van der Noordaa, Chief Executive, GL Group and Henrik Madsen, Chief Executive, DNV Group stood side by side and shared their collective ambition for quality, innovation and growth.

It was also the date when many others within the market were caught napping – as, in an instant, the two former competitors created a top three global certification, testing and consultancy powerhouse.

It goes without saying then, that as far as mergers go, this was/is a big deal.

And, while the transaction still requires the approval from the competition authorities, it’s certainly no mean feat to have gotten it all wrapped up before the Christmas break.

Crucially though, for those working on the inside, the real legwork has only just begun.

Henrik Madsen, the newly emerged group Chief Executive, has already set out a vision to target 2013 sales of about $3.6 billion – a 10% uptick on combined company sales achieved in the past twelve months alone.

What’s more, it’s an annual growth trajectory that he’s expecting to repeat throughout 2014 and 2015, without even breaking sweat.

All in all, it’s a confident pitch. And certainly one that capitalises on a growing demand for international testing and certification services within shipping, oil and gas, and perhaps most pertinently, within renewables. Something that sets the firm on solid ground as the new energy revolution really begins to boom.

However, as many within the market return to work and as the New Year really gets underway, it’d be easy to underestimate the complexity of the integration.

And of the work required by both firms in order to make this vision achievable, during the weeks and months ahead.

After all, it’s no secret that competition between the firms and their respective divisions has always run high.

And that for many investors (particularly those working within renewable energy), it was only ever either one of these two former firms that were ever really considered bankable. Much to the chagrin of others.

This deal then, upsets the apple cart.

And, while it’s driven by market consolidation, increasingly competitive pricing and the need to establish a truly global capability and presence, there’s no denying that, if it works, the new firm will be an innovative and imminently capable force.

Time then, for some smart leadership, some clarity of vision and some dynamic, creative thinking. Over 17,000 staff are now signed up and ready to get back to work.

And work, they must. With some increasingly ambitious specialised sector upstarts still rising steadily through the ranks, the success or failure of the DNV GL Group’s workforce will ultimately dictate just how much can be achieved.

For many, a new year isn’t just a time for reflection. It’s also a time for change.

That’s certainly the case for the 17,000+ staff that now find themselves working for a new entity, called DNV GL Group.

It’s an entirely new company that merges DNV and GL and that only came into being on 20th December 2012.

That was the date when Erik van der Noordaa, Chief Executive, GL Group and Henrik Madsen, Chief Executive, DNV Group stood side by side and shared their collective ambition for quality, innovation and growth.

It was also the date when many others within the market were caught napping – as, in an instant, the two former competitors created a top three global certification, testing and consultancy powerhouse.

It goes without saying then, that as far as mergers go, this was/is a big deal.

And, while the transaction still requires the approval from the competition authorities, it’s certainly no mean feat to have gotten it all wrapped up before the Christmas break.

Crucially though, for those working on the inside, the real legwork has only just begun.

Henrik Madsen, the newly emerged group Chief Executive, has already set out a vision to target 2013 sales of about $3.6 billion – a 10% uptick on combined company sales achieved in the past twelve months alone.

What’s more, it’s an annual growth trajectory that he’s expecting to repeat throughout 2014 and 2015, without even breaking sweat.

All in all, it’s a confident pitch. And certainly one that capitalises on a growing demand for international testing and certification services within shipping, oil and gas, and perhaps most pertinently, within renewables. Something that sets the firm on solid ground as the new energy revolution really begins to boom.

However, as many within the market return to work and as the New Year really gets underway, it’d be easy to underestimate the complexity of the integration.

And of the work required by both firms in order to make this vision achievable, during the weeks and months ahead.

After all, it’s no secret that competition between the firms and their respective divisions has always run high.

And that for many investors (particularly those working within renewable energy), it was only ever either one of these two former firms that were ever really considered bankable. Much to the chagrin of others.

This deal then, upsets the apple cart.

And, while it’s driven by market consolidation, increasingly competitive pricing and the need to establish a truly global capability and presence, there’s no denying that, if it works, the new firm will be an innovative and imminently capable force.

Time then, for some smart leadership, some clarity of vision and some dynamic, creative thinking. Over 17,000 staff are now signed up and ready to get back to work.

And work, they must. With some increasingly ambitious specialised sector upstarts still rising steadily through the ranks, the success or failure of the DNV GL Group’s workforce will ultimately dictate just how much can be achieved.

For many, a new year isn’t just a time for reflection. It’s also a time for change.

That’s certainly the case for the 17,000+ staff that now find themselves working for a new entity, called DNV GL Group.

It’s an entirely new company that merges DNV and GL and that only came into being on 20th December 2012.

That was the date when Erik van der Noordaa, Chief Executive, GL Group and Henrik Madsen, Chief Executive, DNV Group stood side by side and shared their collective ambition for quality, innovation and growth.

It was also the date when many others within the market were caught napping – as, in an instant, the two former competitors created a top three global certification, testing and consultancy powerhouse.

It goes without saying then, that as far as mergers go, this was/is a big deal.

And, while the transaction still requires the approval from the competition authorities, it’s certainly no mean feat to have gotten it all wrapped up before the Christmas break.

Crucially though, for those working on the inside, the real legwork has only just begun.

Henrik Madsen, the newly emerged group Chief Executive, has already set out a vision to target 2013 sales of about $3.6 billion – a 10% uptick on combined company sales achieved in the past twelve months alone.

What’s more, it’s an annual growth trajectory that he’s expecting to repeat throughout 2014 and 2015, without even breaking sweat.

All in all, it’s a confident pitch. And certainly one that capitalises on a growing demand for international testing and certification services within shipping, oil and gas, and perhaps most pertinently, within renewables. Something that sets the firm on solid ground as the new energy revolution really begins to boom.

However, as many within the market return to work and as the New Year really gets underway, it’d be easy to underestimate the complexity of the integration.

And of the work required by both firms in order to make this vision achievable, during the weeks and months ahead.

After all, it’s no secret that competition between the firms and their respective divisions has always run high.

And that for many investors (particularly those working within renewable energy), it was only ever either one of these two former firms that were ever really considered bankable. Much to the chagrin of others.

This deal then, upsets the apple cart.

And, while it’s driven by market consolidation, increasingly competitive pricing and the need to establish a truly global capability and presence, there’s no denying that, if it works, the new firm will be an innovative and imminently capable force.

Time then, for some smart leadership, some clarity of vision and some dynamic, creative thinking. Over 17,000 staff are now signed up and ready to get back to work.

And work, they must. With some increasingly ambitious specialised sector upstarts still rising steadily through the ranks, the success or failure of the DNV GL Group’s workforce will ultimately dictate just how much can be achieved.

For many, a new year isn’t just a time for reflection. It’s also a time for change.

That’s certainly the case for the 17,000+ staff that now find themselves working for a new entity, called DNV GL Group.

It’s an entirely new company that merges DNV and GL and that only came into being on 20th December 2012.

That was the date when Erik van der Noordaa, Chief Executive, GL Group and Henrik Madsen, Chief Executive, DNV Group stood side by side and shared their collective ambition for quality, innovation and growth.

It was also the date when many others within the market were caught napping – as, in an instant, the two former competitors created a top three global certification, testing and consultancy powerhouse.

It goes without saying then, that as far as mergers go, this was/is a big deal.

And, while the transaction still requires the approval from the competition authorities, it’s certainly no mean feat to have gotten it all wrapped up before the Christmas break.

Crucially though, for those working on the inside, the real legwork has only just begun.

Henrik Madsen, the newly emerged group Chief Executive, has already set out a vision to target 2013 sales of about $3.6 billion – a 10% uptick on combined company sales achieved in the past twelve months alone.

What’s more, it’s an annual growth trajectory that he’s expecting to repeat throughout 2014 and 2015, without even breaking sweat.

All in all, it’s a confident pitch. And certainly one that capitalises on a growing demand for international testing and certification services within shipping, oil and gas, and perhaps most pertinently, within renewables. Something that sets the firm on solid ground as the new energy revolution really begins to boom.

However, as many within the market return to work and as the New Year really gets underway, it’d be easy to underestimate the complexity of the integration.

And of the work required by both firms in order to make this vision achievable, during the weeks and months ahead.

After all, it’s no secret that competition between the firms and their respective divisions has always run high.

And that for many investors (particularly those working within renewable energy), it was only ever either one of these two former firms that were ever really considered bankable. Much to the chagrin of others.

This deal then, upsets the apple cart.

And, while it’s driven by market consolidation, increasingly competitive pricing and the need to establish a truly global capability and presence, there’s no denying that, if it works, the new firm will be an innovative and imminently capable force.

Time then, for some smart leadership, some clarity of vision and some dynamic, creative thinking. Over 17,000 staff are now signed up and ready to get back to work.

And work, they must. With some increasingly ambitious specialised sector upstarts still rising steadily through the ranks, the success or failure of the DNV GL Group’s workforce will ultimately dictate just how much can be achieved.

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Full archive access is available to members only

Not a member yet?

Become a member of the 6,500-strong A Word About Wind community today, and gain access to our premium content, exclusive lead generation and investment opportunities.