Firstly, both groups’ units Keppel Offshore & Marine (O&M) and Sembmarine (SMM) could combine their core competencies and facilities to strengthen their franchise and thus, create room for further cost rationalisation, say Ho and Chua.
SINGAPORE (July 21): DBS Vickers Securities says the possibility of M&A between Keppel Corporation and Sembcorp Industries (SCI) has resurfaced, prompted by prevailing challenges in the O&M sector and recent changes in the leaderships of both groups.
In a Thursday report, analysts Ho Pei Hwa and Janice Chua detail three scenarios.
