A Norwegian billionaire is realigning his two oil companies to focus on the renewable industry future

Norwegian billionaire Kjell Inge Rokke is recreating his business structure’s systems in a move to recuperate his oil firms and reinvest in renewable energy.

The billionaire’s Aker ASA investment company intends to amalgamate his two mega oil sector suppliers Aker Solutions ASA and Kvaerner ASA, to form a new two renewable energy base. This presentation of this plan a rise of 37% and 19% for these two firms if the market picks. These two firms were facing a dismissal should the rising demand for renewables topple the economy.

This alteration for the Aker group comes when the country’s oil sector is experiencing a recess due to the novel coronavirus pandemic. The other imperative problem for this industry is the declining need for fossil fuels, especially now that the globe is tackling climate change.

The chief executive of Aker, Oyvind Eriksen, stated that their mission as a firm is to supersede the renewable energy firms by developing technology that counters the techniques of these global industries. This strategy will ensure that they survive the looming transition and rival favorably the upcoming renewable energy industries.

Another strategy of the Aker group is to procure the wind energy producer NBT AS at face value of $333 million to upscale the company’s renewable energy subsystem known as Aker Horizons. Horizons will be chaired by Kristian Rokke, the Aker group CEO’s son, who has proven his leadership skills and qualities by leading in other branches of the Aker group.

The resultant firms from these two companies, Aker Offshore Wind and Aker Carbon Capture, will join the Merkur Market in Oslo and be financed by two private investors. Aker Solutions was already delving into renewables, especially in offshore wind projects. The firm was providing engineering services for these projects and claiming ownership in some projects where it was legal.

The precise balance of amalgamation between Aker Solutions and Kvaerner is unknown, but sources have that the shareholders will receive 43% and 53% percent in the resultant firm.

Aker Solutions intends to elect Kjetel Digre as their chief executive. Kjetel’s appointment is effective beginning August 1st and will be responsible for operations and resource management at Aker BP ASA. The resultant company will reduce its staff from 19000 to 15000 because of the coronavirus pandemic.

Finally, the two companies’ approval to merge and gain an enlisting on Merkel Market awaits the consent of the scheduled shareholder meetings in September. The government, which has about 30% ownership in these companies, said that it supports the merger.