Norway's Aker Solutions is acquiring a 70 per cent stake in Brazilian oil service company, C.S.E. Mecânica e Instrumentação Ltda, that gives Aker access to Brazil's growing market for servicing existing oil and gas fields.
The deal includes an option to purchase the remaining 30 percent of the company three years after the expected close of the transaction by the end of the first quarter of 2017. The purchase price of the deal was not disclosed and the acquisition is subject to approval by Brazilian competition authorities.
C.S.E. provides maintenance, assembly, commissioning and crane operation services at offshore and onshore facilities.
"Aker Solutions has established a solid presence and reputation in Brazil's oil and gas market over the past 40 years and entry into the country's brownfield segment is an attractive growth opportunity. Joining forces with a successful local player like C.S.E. fits well with the internationalisation of our services business," said chief executive officer Luis Araujo.
To ensure continuity, the owners of C.S.E., Altair Dietrich, the chief executive officer, and Luiz Joanello, the chief commercial officer, will stay on with the company. C.S.E. will remain a separate legal entity with a management team consisting of personnel from each company.
"By combining the strengths of both companies we will expand our capabilities and create significant value for our customers. Teaming up with Aker Solutions is a huge step for the company and puts us in the next league in terms of competing for even larger and more complex contracts," said Dietrich.