Frontline calls off Euronav merger

Norwegian oil tanker shipping company Frontline no longer wants to merge with its Belgian competitor Euronav. The company reported on Tuesday that the merger agreement has been terminated.

The merger was supposed to make Frontline a global leader in the oil tanker industry, said the company last year. But the Saverys family, the Belgian founding family of Euronav, opposed the merger. The founders questioned the company's strategy and want to green Euronav's fleet with hydrogen tankers instead.

The family raised its stake in Euronav to 25 per cent in December, which would allow them to block the merger themselves. In a press release, Frontline now announced it is pulling the plug on the deal. The Norwegians will not make an exchange offer for Euronav's shares and will no longer seek a listing in Brussels.

"We regret not being able to complete the merger as planned in July 2022," says Frontline CEO Lars H. Barstad. The company did not give a reason for abandoning the plans in the announcement.

^{The Cap Quebec, a Suzemax tanker of the Euronav fleet, in the port of Antwerp. © BELGA PHOTO DIRK WAEM}