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Japanese shipbuilder Mitsui Engineering and Shipbuilding (MES) has bought 99.36% of the outstanding ordinary shares in German designer and manufacturer of gas tanks and gas handling systems TGE Marine AG to expand its foothold within the market for medium sized multi-gas carriers.

MES will on September 28 acquire 1,209,489 ordinary shares in TGE from Caledonia Investments plc, Gasfin Investment S.A. and Dr. Küver GbR, the partnership belonging to the CEO of TGE, for a total consideration of approximately around JPY 22 billion (EUR 164 million).

The shipbuilder will acquire the TGE ordinary shares listed above via a special purpose vehicle which will be incorporated by MES for the sole purpose of acquiring these TGE ordinary shares. In addition, after closing of this transaction, MES will conduct the necessary procedures under German law to make TGE a 100% consolidated subsidiary.

Bonn-headquartered TGE is an engineering, procurement, and construction supervision provider that, among other services, designs type-C pressurized gas tanks and gas handling systems, procures raw materials and components, and supervises construction for small-to-medium sized gas carriers.

TGE already has strong market positions in both the small LNG carrier and small ethylene carrier markets, with more than 50% share in each market, and in the LPG carrier market, with approximately 30% share, according to MES.

In addition, TGE is expanding its business in the engineering and construction supervision of FGSS and floating storage & regasification unit for LNG (FSRU).