Frontline and Euronav have agreed to merge in an all-stock deal aimed at creating a large, 146-vehicle global independent tanker operator with an estimated market value of more than $4 billion. Both companies are involved in the ocean shipping and storage of crude oil. Headquartered in Norway, Frontline owns and operates a fleet of 18 very large crude carriers, 29 Suezmaxes and 20 LR2/Aframax tankers. The publicly traded company will add five more VLCCs, scheduled for delivery in 2022.

Global oil transportation chain

Headquartered in Belgium, Euronav owns and operates a fleet of two V-Plus vessels, 40 VLCCs, 24 Suezmax tankers and two floating storage and offloading vessels. The combined group will operate as Frontline and be headquartered in Cyprus. Its operations will continue in Europe and Asia, including Belgium, the United Kingdom, Norway, Greece and Singapore. The enlarged Frontline will have a fleet of 68 VLCCs, 56 Suezmaxes, 20 LR2/Aframax vessels and two FSO vessels. It will be listed on Euronext Brussels, the New York Stock Exchange and the Oslo Stock Exchange.

Frontline chief executive Lars Barstad said Frontline believed the deal would form a strong combination at an exciting time in the cycle. We are integrating a strong operational, technological and commercial platform to enhance shareholder value. Under the terms of the deal, 1.45 Frontline shares will be exchanged for each share in Euronav. The transaction has been unanimously approved by all members of Frontline's board of directors and Euronav's supervisory board. The swap ratio provides the Belgian tanker operator with a value of $12.09 per share.

Existing Euronav shareholders will own about 55% of the combined company, while existing Frontline shareholders will own 45%. Hugode Stoop, CEO of Euronav, said: "The proposed merger is a huge opportunity to take the lead in the tanker industry as we seek to master the transition to a world of clean, safe and sustainable shipping. Keywords: engineering news, overseas news

This transaction represents a unique opportunity to better serve our customers, improve shareholder returns and provide a unique platform where people can unleash their talents while advancing our ambitious shipping industry Decarbonization Sustainability Strategy.Editor/XingWentao