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April 8, 2022

Frontline and Euronav reach $4.2bn merger deal

The combined group will operate under the name Frontline.

Independent tanker companies Frontline and Euronav have entered a stock-for-stock merger deal that values the combined business at more than $4.2bn.

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The shareholders of Euronav will have a 59% interest in the merged entity, while the remaining 41% will be held by Frontline shareholders.

Euronav is also expected to pay total dividends of up to 12 cents prior to the closing of the deal.

The merged company will operate under the name Frontline.

It would continue operations from the US, UK, Belgium, Norway, Singapore and Greece.

The merged company will include seven board members, with Euronav’s existing CEO Hugo De Stoop to lead the business in the same role.

De Stoop noted: “This transaction would mark an exciting development for the tanker industry, creating a leading tanker company which would be positioned to serve the needs of customers, support partners, and drive technology and sustainability initiatives to lead the energy transition.”

Incorporated in Bermuda and headquartered in Oslo, Norway, Frontline offers ocean transportation and storage services for crude oil customers.

The company deploys its fleet both on the spot and period market. Its owned and operated fleet includes 19 very large crude carriers (VLCCs), 27 Suezmaxes and 18 LR2 tankers.

Based in Antwerp, Belgium, Euronav is also involved in crude oil ocean transportation and storage services.

The firm’s owned and operated fleet includes 2 V-Plus vessels, 41 VLCCs, 27 Suezmaxes and 2 FSO vessels under a long-term contract.

The amalgamation of the companies will lead to the formation of a global leader in the oil tanker segment.

The combined company will include 69 VLCCs, 57 Suezmax vessels and 20 LR2/Aframax vessels.

The transaction is pending shareholder and regulatory approvals as well as employee consultations and due diligence processes.

Last week, Euronav suspended operations with Russian customers in light of the country’s military offensive against Ukraine.

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Free Report
img

2022: So far In Venture Capital

Global investment in 2022 has been majorly dominated by North America, Europe, and Asia Pacific, whereas the Middle East, and South and Central America have recorded low investments comparatively. In light of this, Europe and North America have been identified as the major destinations for Private Equity and Venture Capital (PE/VC) investments.   GlobalData’s whitepaper analyzes which sectors PE/VC firms have been investing in, looking at Technology, Media, and Telecom, with these sectors recording $356 billion and a deal volume of over 10,000 deals in 2022. Healthcare, Financial Services, Business & Consumer Services, and Construction sectors have also seen high investment activity by PE/VC firms, recording a deal value of over $70 billion each.   But what can this mean for you?   Understand how the Deals Database on GlobalData Explorer can be leveraged to:  
  • Track the Aggregate Investment Volumes in PE/VC-Stage firms across geographies and sectors, in addition to viewing the specific deals that drove these volumes
  • Identify the top investors already active in any sector-Geography combinations
  • Assess the Performance of Financial and Legal Advisors, supporting the Dealmaking in any segment of choice (Customizable League tables)
  • Understand what is driving the PE/VC fundraising (Deal Rationale)
  Consult our full report here and optimize your business strategy.
by GlobalData
Enter your details here to receive your free Report.

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