Brazilian offshore support vessel (OSV) owner OceanPact is set to merge with CBO Group, a move that will be one of the most significant consolidation events in the Brazilian OSV market in recent years.
According to documents filed with regulators by the two companies, the merger will be completed through CBO’s incorporation into OceanPact, which will integrate the two fleets that operate complementaryly in the Brazilian offshore oil and gas market.
Upon completion of the merger, the new company will operate 73 vessels, generate annual revenue of over $778 million, and have a combined order backlog of approximately $2.7 billion.
According to the merger plan, the new company will be headed by Flavio Andrade as CEO, Eduardo de Toledo as CFO, Tinti as Vice President of the Shipbuilding Division, and Haroldo Solberg will lead the integration efforts.
The new company’s board of directors will consist of seven members, including three independent directors. Shareholders include Vinci Compass and Patria Investments infrastructure fund, alongside development bank subsidiary BNDESPar and OceanPact management. Free-floating investors will hold a stake of just under 29%.
This merger comes days after U.S.-listed OSV giant Tidewater acquired Brazil’s Wilson Sons Ultratug and its affiliate Atlantic Offshore Services for $500 million, highlighting a new wave of consolidation in the country’s OSV market.
The merger between OceanPact and CBO remains subject to approval by Brazil’s antitrust authority, the Administrative Council for Economic Defense (CADE), and requires approval by shareholders and creditors.
Flavio Andrade, CEO and founder of OceanPact, stated: “This merger will enhance our flexibility in fulfilling contracts, enabling us to bid on larger-scale, more technically demanding projects… Subsea engineering, oilfield decommissioning and removal, and environmental services will become key growth areas moving forward.”
Marcos Tinti, CEO of CBO, stated: “This merger comes at an opportune moment, as Brazil’s oil and gas production is currently on an upward trajectory. The new structure following the merger will more effectively support our clients’ expansion plans while creating value for shareholders and employees.”