Antwerp-based Euronav aims to become global oil tanker industry leader through merger

The Antwerp-based crude oil tanker company Euronav wants to enter into a combination with Frontline, a Bermuda-based sector partner. The two companies have a combined market capitalisation of over 4.2 billion US dollars. The company would continue under the name Frontline.

"Creating a global leader in the oil tanker industry," a press release read on Thursday. Both companies unanimously approved a term sheet for the deal. Euronav's shareholders will be in the majority after completion. They will own about 59 percent of the combined group, Frontline's shareholders about 41 percent. The company will be named Frontline, but its CEO is coming from Euronav.

"If the combination materializes, the combined group would continue under the name Frontline and would continue to operate from Belgium, Norway, UK, Singapore, Greece and the US. The combined group will be headed by Mr. Hugo De Stoop as the Chief Executive Officer," the press release reads. Frontline is based in Bermuda, but is a Swedish shipping company in origin.

(KOR)

Picture © BELGA PHOTO HAND OUT EURONAV