Frontline Abandons Euronav Merger Plan

by Ship & Bunker News Team
Tuesday January 10, 2023

Tanker firm Frontline has given up on its plan to merge with Euronav following opposition from key shareholders.

The company "announces that it no longer pursues a combination between Frontline and Euronav," it said in a statement on its website on Monday.

The merger would have created the world's largest publicly traded tanker firm.

Opposition from Compagnie Maritime Belge, Euronav's biggest shareholder, is thought to be behind the plan being nixed.

"We regret that we could not complete the merger as envisaged in July 2022, as that would have created the by far largest publicly listed tanker company," Lars Barstad, CEO of Frontline, said in the statement.

"At the same time, both companies have independently very large fleets of crude oil and product tankers, and are already enjoying economies of scale as evidenced by our respective recent financial reports.

"Frontline will with its efficient operations continue to capture value as this cycle unfolds, and remain focused on maximizing dividend capacity per share."