Tanker firm International Seaways (INSW) has concluded the all-stock merger deal valued at around $416m with energy shipping company Diamond S Shipping (DSSI).

The company anticipates cost synergies of over $23m and revenue synergies of around $9m through the merger, which are expected to be achieved within the next year.

Former DSSI stockholders hold around 44.25% of the equity of the combined firm while pre-merger INSW shareholders own nearly 55.75%.

On 15 July, the pre-merger INSW shareholders were offered a special dividend of $1.12 per share.

The combined entity has an enterprise value of nearly $2bn and a workforce of over 2,200.

INSW president and CEO Lois Zabrocky said: “With enhanced scale, financial strength and commercial expertise, we have markedly strengthened our position to capitalise on favourable long-term industry fundamentals in both the crude and product markets.

“As we integrate the combined company, our focus will remain on further executing our balanced and accretive capital allocation strategy while upholding our best-in-class ESG track record and continuing to deliver safe and efficient transportation of energy cargoes for our world-class customers.”

After this merger, INSW claims to be the second-largest US-listed tanker firm, with a vessel count of more than 100 ships.

It is now also claimed to be the third-largest by deadweight, aggregating around 11.3 million deadweight tonnes.

In a statement, INSW said: “The merger enhances INSW’s capabilities in both the crude and product markets and creates “power alleys” for INSW in the large crude VLCC and Suezmax, and LR1/Panamax and MR markets.”

As of now, INSW owns and runs a fleet of 102 ships, including 15 Suezmaxes, 13 VLCCs, five Aframaxes/LR2s, 13 Panamaxes/LR1s, 48 MR tankers and six Handy tankers.