Euronav & Frontline Merge in an All-Stock Deal

Belgian Euronav NV and Norwegian Frontline Ltd. sign a definitive combination agreement to merge. The merger aims to create a global independent oil tanker operator, making John Fredriksen’s, Norwegian-born Cypriot oil tanker and shipping billionaire businessman, dream into a reality.

Incorporated and headquartered in Cyprus, the merged company will be called Frontline. It will continue to operate from several locations in Europe and Asia including Belgium, Greece, Norway, the United Kingdom, and Singapore. The Euronav brand will no longer exist. 

The merger is based on a 1.45 Frontline shares per Euronav share exchange ratio approved by the board members of the two companies. The merged company is made up of 55% of Euronav shareholders and 45% of Frontline shareholders.

Earlier this year, Euronav and Frontline announced a merger deal to form a $4.2bn tanker with 160 ships through an all-share deal.

Frontline CEO, Lars H. Barstad will join the board and Euronav Hugo De Stoop will serve as the CEO of the merged company. It will be listed on Euronext Brussels, Oslo Stock Exchange and New York Stock Exchange.

The merger is expected to make at least $60 million annually.

“This transaction creates a clear market leader in the tanker market and will position the combined group for continued, sustainable shareholder value creation and the realization of significant synergies,” said John Fredriksen in a statement. 

Frontline and Fredriksen currently control more than 18% Euronav shares. They were in a public conflict earlier this year for control of the Antwerp-based tanker firm from the Saverys family who controlled the company for 25 years.