Frontline calls off plan to create tanker giant by merger with Euronav

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Frontline plc has announced that it no longer wishes to pursue its proposed tie-up with fellow tanker operator Euronav and has terminated the combination agreement the two companies entered into six months ago.

This follows the announcement in December by Euronav shareholder CMB, controlled by the Saverys family, that it had succeeded in increasing its stake to the 25% needed to block any full merger between the two companies, despite the Euronav board’s desire to proceed.

As a result, Frontline says it will now not make a voluntary conditional exchange offer for all outstanding Euronav shares and no longer seek a listing on Euronext Brussels.

Mr Lars H. Barstad, CEO of Frontline said: “We regret that we could not complete the merger as envisaged in July 2022, as that would have created the by far largest publicly listed tanker company.

‘At the same time, both companies have independently very large fleets of crude oil and product tankers and are already enjoying economies of scale as evidenced by our respective recent financial reports.

“Frontline will with its efficient operations continue to capture value as this cycle unfolds and [will] remain focused on maximizing dividend capacity per share.”

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