The new firm would have a fleet of 69 VLCCs, 57 Suezmaxes and 20 LR2 or Aframax tankers. File Image / Pixabay
Tanker shipping companies Frontline and Euronav have announced plans for a merger, in a major shake-up of the global tanker market.
The proposed stock-for-stock combination is based on an exchange ratio of 1.45 Frontline shares for every Euronav share, Euronav said in a statement on its website on Thursday.
The combined firm would operate under the name Frontline, with current Euronav CEO Hugo De Stoop as CEO. The new firm would have a fleet of 69 VLCCs, 57 Suezmaxes and 20 LR2 or Aframax tankers.
"A combination of Frontline and Euronav would establish a market leader in the tanker market and position the combined group for continued shareholder value creation in addition to significant synergies," Frontline owner John Fredriksen said in the statement.
"The new Frontline would be able to offer value enhancing services for our customers and increase fleet utilisation and revenues which would benefit all stakeholders.
"I am very excited and give my full support and commitment to this combined platform."
No guidance has been given on when the proposed transaction may be completed.