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Frontline and Euronav merger creates continent’s Largest tanker firm

Frontline and Euronav merger creates continent’s Largest tanker firm

The two European giants,  Euronav and John Fredriksen’s Frontline,  plan to combine their fleets in an all-share deal to create the continent’s largest tanker firm in which Fredriksen will hold a leading 22% stake once the deal is approved. The $4.2bn entity would be called Frontline, and be headed by Euronav’s CEO, Hugo De Stoop.

In an update to clients yesterday, Evercore ISI analysts said the merger would create a “supersized tanker behemoth” in an industry where most company market capitalisations are lower than $1bn.

The merged company would become the largest owner-operator of crude tanker tonnage, with a combined fleet of 69 VLCCs and 57 Suezmax vessels and 20 LR2/Aframax vessels. For perspective, DHT, which would be the second-largest crude tanker company following the merger, has a total of 26 VLCCs.

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