Singapore conglomerate Keppel Corporation has sold its logistics arm to France’s GEODIS for $80m, while also making progress on a long mooted merger of its shipyard division with compatriot Sembcorp Marine.
The divestment of Keppel Logistics, a non-core business that has been operating at a sub-scale level, is in line with the Keppel Group’s Vision 2030 plans to simplify and focus its business, the company explained while also providing an update on Singapore yard merger plans.
Discussions on combining Keppel Offshore & Marine and Sembcorp Marine are ongoing but both parties said yesterday more time is needed to finalise a deal.
“Both parties are committed to continue with exclusive negotiations and work towards a definitive agreement by 30 April 2022,” Keppel stated in a release.
Keppel also said that significant progress has been made on advancing the sale of Keppel O&M’s legacy rigs and associated receivables to a separate company that would be majority owned by external investors.