The merger is expected to close in the third quarter of 2021. File Image / Pixabay
International Seaways and Diamond S Shipping have announced a merger between the two firms, creating the second largest US-listed tanker company by vessel count.
International Seaways and Diamond S shareholders will own about 55.75% and 44.25% of the new company, respectively, they said in a press release on Wednesday.
The combined firm will be a much larger presence in the global tanker market, as well as having more leverage in the bunker market. The companies expect to save more than $23 million in annual costs after merging.
The companies will have a combined fleet of 100 tankers and 11.3 million DWT.
"By bringing together two leading US-based diversified tanker owners, we expect to deliver a number of compelling strategic and financial benefits to the stakeholders and customers of both companies," Lois Zabrocky, CEO of International Seaways, said in the statement.
"Specifically, with our enhanced scale and capabilities combined with a best-in-class ESG track record, we are ideally positioned to meet the evolving needs of leading energy companies and capitalize on favourable long-term industry fundamentals."
The merger is expected to close in the third quarter of 2021, subject to shareholder and regulatory approvals.