SembCorp-Keppel Tie-up Scrapped

A planned merger of the companies' shipyard operations is called off after both parties fail to agree on terms. Singapore’s shipyard business is booming as other industries struggle, and this may have caused plans for the sector's biggest corporate marriage here to hit the rocks.SembCorp Industries and Keppel Corp, two of Singapore's largest conglomerates, have scuppered talks to merge their shipyard operations after failing to agree on terms.

'There are no plans to restart negotiations or further discussions,' they said in a joint statement yesterday. They did not elaborate but market-watchers say pricing may have been the hitch.The shipyard operations are cash cows for the two government-linked conglomerates. With this industry now on the upturn, neither may have been willing to give them up. The announcement came about a month after both parties said they were in preliminary talks to rationalise their shipyard operations, amid other unspecified collaborations. A merger of SembCorp's and Keppel's shipyard operations was likely to have involved Keppel Fels, Keppel Hitachi Zosen and SembCorp Marine.