Part 7/11:

Mergers and Strategic Collaborations

Competition in China and South Korea demonstrates a trend toward larger, merged entities capable of harnessing synergies—cost savings, technological sharing, and enhanced global competitiveness. Justin Tang of United First Partners suggests that a merger between Keppel Offshore & Marine (Keppel O&M) and Semcorp Marine remains a real possibility, contingent upon antitrust reviews for ongoing deals.

Two primary pathways emerge for sector consolidation:

1. Keppel's Strategic Moves: Keppel could initiate a new bid for Capital Corp at a lower valuation. If successful, this could facilitate the sale of Keppel Offshore Marine (KOM) to Semcorp Marine, leading to a streamlined, more attractive Keppel entity for investors.