Norwegian tanker owner and operator Frontline has terminated the combination agreement it entered into with Belgian counterpart Euronav in July 2022, the company revealed on Monday in a sudden turn of events.
The stock-for-stock merger deal would have created a global oil tanker operator valued at $4.2bn. Specifically, the combination deal was set to be completed in the first quarter of 2023 following Frontline’s relocation to Cyprus.
“Frontline is no longer pursuing the combination between Frontline and Euronav,” Frontline said.
Related: Frontline & Euronav Clinch $4.2B Deal To Create World’s Biggest Tanker Fleet
“As a result, Frontline will not make a voluntary conditional exchange offer for all outstanding Euronav shares. Frontline will also no longer seek a listing on Euronext Brussels. Frontline has simultaneously with this notice published a separate notice withdrawing its intention to such voluntary conditional exchange offer.”
“We regret that we could not complete the merger as envisaged in July 2022, as that would have created the by far largest publicly listed tanker company,” Lars H. Barstad, CEO of Frontline said.
“At the same time, both companies have independently very large fleets of crude oil and product tankers, and are already enjoying economies of scale as evidenced by our respective recent financial reports.
“Frontline will with its efficient operations continue to capture value as this cycle unfolds, and remain focused on maximizing dividend capacity per share.”
The tie-up of the two giant tanker companies was believed to be the deal of the year in the tanker market, if not even the deal of the decade. It would have created a tanker super-power with a combined fleet of 146 vessels comprising 68 VLCCs, 56 Suezmaxes, 20 LR2/Aframaxes and 2 FSO units.
