SINGAPORE (Reuters) -Singapore’s Sembcorp Marine (Sembmarine) has agreed to combine with local conglomerate Keppel (OTC:) Corp’s larger offshore and marine (O&M) unit, a year after the Temasek-backed firms started deal talks to cope with an industry downturn.

“The combined entity will be well-positioned to capture opportunities arising from decarbonisation in the oil & gas sector and from the global energy transition towards renewables, particularly in the areas of offshore wind, and new energy sources,” the companies said in a joint statement on Wednesday.

Sembmarine and Keppel Offshore & Marine, one of the world’s largest offshore oil rig builders, have suffered from a prolonged and severe sector downturn over many years. Partially, the outlook has improved with an increase in oil price.

After the merger has been completed, Keppel, its shareholders, will control 56%, and Sembcorp Marine shareholders the remainder. Keppel will give 46% to its shareholders in-specie and keep a 10% share.

Temasek is the majority shareholder of Sembmarine and will now be the biggest shareholder with a 33.5% share.

Sembmarine’s value was S$4.1Billion as at Tuesday’s closing prices.

JPMorgan (NYSE) serves as the financial adviser for Keppel in the transaction. Credit Suisse Sembmarine’s financial advisor (SIX)

($1 = 1.3781 Singapore dollars)