Kvaerner, the Anglo-Norwegian engineering and construction Group, has reached an agreement in principle to sell Kvaerner Oil & Gas’ London based Hydrocarbons business and Kvaerner Process Technology, to the Yukos Oil Company of Russia.
The total consideration for the sale amounts to $100 million to be paid in cash upon conclusion of a final agreement.
Kvaerner Hydrocarbons, part of the Group’s Oil & Gas business area, provides engineering services, mainly to onshore oil and gas projects. The business employs approximately 600 people, the majority of which located in London.
The sale of Kvaerner Process Technology includes Kvaerner Heurty. Both of these businesses are part of the Kvaerner E&C business area, and are engaged in research, development, testing and the sale of process technologies and equipment. These businesses employ approximately 375 people located in the UK, Switzerland, France and Italy.
The sale is subject to satisfactory completion of due diligence, final agreement, and to approval both by the current Kvaerner Board – and the Board expected to be elected on November 2nd. The sale is also subject to certain other necessary approvals.
The final sale agreement is expected to be entered into by the end of November and the sale completed as soon as possible thereafter.