Oil tanker owners Frontline and Euronav sign merger deal

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 (Jul 11).

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

Shares in Oslo-listed Frontline, the smaller of the 2 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 per cent by existing Euronav shareholders and 45 per cent 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 per cent of the total outstanding shares in Euronav, it said. REUTERS