The Strong Get Stronger
Consolidation in the maritime industry is not something new. In the past five years, oil majors such as Exxon and Mobil, and BP, Amoco and Arco have all consolidated. Shipyards haven't been immune to mergers, either; as Halter was purchased by Friede Goldman; and Litton Ingalls consolidated with Avondale. But, when equipment manufacturers begin to consolidate, the effects aren't quite as obvious. In the past five years, Caterpillar acquired MaK and, more recently, Sabre. And Rolls-Royce has joined the buying frenzy with such zeal and aggression, it's almost easier to list companies not owned by the propulsion giant. Part of the ambiguity of the merger between equipment manufacturers is, typically, the existing product line is still maintained; just owned and distributed by the new company.
A Quality Blend
A recent clutch of 'Rolls-Royce' shipboard equipment and technology contracts in Norway arising out of specialized, capital-intensive newbuild projects testified to the U.K. group's march into the commercial marine domain. For sure, the emergence of the engineering group's name in new mercantile circles is the outcome of last year's acquisition of Vickers, and its Vickers-Ulstein Marine division, rather than the result of U.K. home-grown product diversification. But the new proprietor of the former Ulstein and Vickers' interests intends to build on the platform and integrated system opportunities offered by ownership of the industry's most extensive global network of marine equipment production.
