Euronav and Frontline sign $4.2bn deal to create the largest fleet of oil tankers

On Thursday, two of the world's largest operators of crude oil tankers, Euronav and Frontline, announced a merger. The two companies are going to merge in all-share transactions, and it will result in the world's largest oil tanker fleet in terms of capability.

Frontline board has already approved the merger valuing the combined entity at $4.2 billion. The merged entity will surpass Cosco, China's largest owner of large crude carriers. Post the merger, Frontline will hold a 59% stake in the merged company and the remaining holding will belong to Euronav.

Post-merger, Frontline would be in a position to offer value-enhancing services to its customers and increase fleet revenue and utilization. It will benefit all the stakeholders. The combined fleet will consist of 57 Suezmax vessels, 69 very large crude carriers, and 20 long-range two Aframax vessels.


The deal will make it the largest owner of both suezmaxes and VLCCs, overtaking Greek-owned private fleets and national owners in China, Saudi Arabia, and Iran.

The merger news was in the air for a long time, so it has not come as a surprise to most people. The news gained momentum when Fredriksen, a transport tycoon, bought 9% stake in Euronav in 2021. However, readers should know that the merger was first sought two decades back in 1999.

The chief executive position will remain with Hugo De Stoop. The board of directors will change and now will have the following: two nominated by the Fredriksen holding company Hemen Holding Limited, three current independent Euronav board members, and two additional new independent directors.

Euronav is listed in New York and Euronext, while Frontline is listed on the Oslo and New York Inventory Exchanges.

Frontline VLCCs are not listed on the Tankers International pool website. On the other side, Euronav vessels are listed. It is still unclear whether these vessels will rejoin the existing 56 VLCCs listed on the pool website.