Seaborne crude oil transportation services provider General Maritime has signed a definitive agreement with Navig8 Crude Tankers to create a new entity, Gener8 Maritime.

The new firm will have a combined fleet of 46 vessels consisting of 21 VLCC new-builds and 25 vessels in operation, including seven VLCCs, 11 Suezmaxes, four Aframaxes, two Panamax tankers and one Handymax tanker.

Upon delivery of the new-builds, Gener8 Maritime’s fleet will total 11 million deadweight tonnes with an average age of less than 5.5 years with a value of $3bn.

Gener8 Maritime will also contribute its crude tankers to established commercial pools managed by Navig8 Group.

"Gener8 Maritime will be well-positioned to take advantage of improved market conditions and increasing average voyage lengths."

General Maritime chairman Peter Georgiopoulos: "We are pleased to have reached this agreement with Navig8 Crude, which we believe will combine an established owner and highly respected commercial operator on an unprecedented scale.

"Together, Gener8 Maritime will be well-positioned to take advantage of improved market conditions and increasing average voyage lengths with one of the largest, youngest and most efficient fleets in the industry."

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By GlobalData

Under the deal, General Maritime and Navig8 Crude will merge in a stock-for-stock transaction and the issued and outstanding common stock of Navig8 Crude will be purchased by a newly formed subsidiary of General Maritime, Navig8 stated.

Shareholders of Navig8 Crude will receive 0.8947 shares of the combined company for each share of Navig8 Crude common stock.

Navig8 Crude chairman Nicolas Busch said: "We believe this highly complementary combination will deliver outstanding value to shareholders."

Headquartered in New York, the new entity will be incorporated under the laws of the Marshall Islands.