Boskalis abandons pursuit of Smit

Boskalis cited the global financial crisis and the opposition of Smit’s management to a takeover that would have seen Smit broken up and its Harbour Towage division sold on.Smit and many in the Dutch financial markets had questioned whether the acquisition would result in any successful synergies between the two companies. Smit chief executive Ben Vree held strong in his view that the proposed bid undervalued his company and that a takeover would destroy rather than create value. Smit employees had also been outspoken in their opposition, with the employee council saying the bid was like ‘killing the elephant only for its ivory’. Employees wore ‘Hands off Smit’ T-shirts at a naming ceremony for three new ASD tugs in Rotterdam earlier this month.

Boskalis has built a 20% shareholding in Smit. The Executive and Supervisory Boards of both companies had held preliminary discussions to investigate whether an agreement could be reached but stalemate was the only outcome.

Ben Vree expressed surprise and relief at the Boskalis announcement. He said, ‘Smit will continue its successful strategy of integrated maritime services, making optimal use of synergies between our divisions of Harbour Towage, Terminals, Salvage, and Transport & Heavy Lift. Today’s announcement signals the end of a period of uncertainty for our company, our joint venture partners and our employees. Our business shows a positive development for the second half of this year and our investment programme is at full speed. We are back to business as usual and have set our sails.’

In the immediate aftermath of the Boskalis announcement to withdraw, its shares rose by 10.45% while those of Smit fell by 27%. A Boskalis spokesman would not comment on whether his company might renew its pursuit of Smit when the world economy had improved.