UK markets open in 38 minutes
  • NIKKEI 225

    28,546.98
    +727.65 (+2.62%)
     
  • HANG SENG

    20,191.34
    +108.91 (+0.54%)
     
  • CRUDE OIL

    93.99
    -0.35 (-0.37%)
     
  • GOLD FUTURES

    1,807.10
    -0.10 (-0.01%)
     
  • DOW

    33,336.67
    +27.16 (+0.08%)
     
  • BTC-GBP

    19,642.21
    -589.34 (-2.91%)
     
  • CMC Crypto 200

    568.77
    -5.98 (-1.04%)
     
  • ^IXIC

    12,779.91
    -74.89 (-0.58%)
     
  • ^FTAS

    4,131.26
    -19.42 (-0.47%)
     

Oil tanker owners Frontline and Euronav sign merger deal

  • Oops!
    Something went wrong.
    Please try again later.
·1-min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

OSLO (Reuters) - Frontline and rival Euronav have signed an all-stock merger deal to create a market-leading oil tanker group with 146 vessels including 68 Very Large Crude Carriers (VLCCs), the companies said on Monday.

The firms, which expect the merged company to have a market capitalisation of more than $4 billion and the merger to generate synergies of at least $60 million a year, first announced their intention to merge on April 7.

Shares in Oslo-listed Frontline, the smaller of the two but after which the combined group is to be named after, will be exchanged into Brussels-listed Euronav shares at a ratio of 1.45 to 1.

The combined company will be held roughly 55% by existing Euronav shareholders and 45% by existing Frontline shareholders, assuming all Euronav shares are tendered in the tender offer.

Frontline and its Famatown Finance Limited currently already own 18.8% of the total outstanding shares in Euronav, it said.

(Reporting by Victoria Klesty, editing by Gwladys Fouche)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting