Merger talks between Bermuda-based and NYSE-listed Nordic American Offshore (NAO) and Canada’s Horizon Maritime Services have been abandoned.
NAO said in a short statement on Friday that the contemplated business combination with Horizon Maritime had been shelved as it had been decided not to move forward at this time.
On the basis of being geographically complementary with focus on each side of the North Atlantic basin, the two companies had entered into a memorandum of understanding to further explore the potential combination at the beginning of October 2018 with an ambition to execute a binding agreement within that same month.
At the end of October, the two companies agreed the main terms of the combination but diligence processes were still ongoing.
The plan was for NAO to own a 48% and Horizon a 52% interest in the new business, which was expected to be operational before the end of this year. However, the agreement never came through.
NAO owns and operates a fleet of ten identical harsh environment offshore support vessels with operating offices in Norway and elsewhere.
Horizon Maritime is a Canadian company operating a fleet of seven vessels with offices across the country.
Offshore Energy Today Staff