OSLO, Norway -- March 4, 1996 -- Kvaerner A.S. of Norway agreed today to buy Trafalgar House P.L.C. for L904 million (about $1.4 billion). This acquisition includes Cunard Line and its venerable ocean liner Queen Elizabeth II.

In addition to combining Kvaerner's shipbuilding interests with Cunard Line, the merger will create one of the world's biggest construction companies involved in oil and gas projects. Kvaerner has long sought to expand internationally in oil and gas work. Trafalgar House is perhaps best known for its construction and engineering operations.