Belgian giant CMB.TECH and Norwegian Golden Ocean merge

Antwerp-based maritime group CMB.TECH, formerly Euronav, wants to merge with Norwegian dry bulk carrier Golden Ocean Group. The merger would create one of the world’s largest diversified listed maritime groups with a combined fleet of more than 250 vessels.

A final agreement would be concluded this quarter, with the merger to be completed in the third quarter. The deal is subject to customary approvals from regulators.

Greener shipping

In March, CMB.TECH already acquired 40.8% of Golden Ocean, part of competitor Frontline, the oil tanker shipping company owned by Norwegian shipping magnate John Frederiksen, for nearly 1.2 billion dollars.

The Saverys family controls more than 90% of CMB.TECH following a public takeover bid. That followed a conflict between the Saverys and Frontline, which also held a significant stake in what was then Euronav.

Both shareholders disagreed on the direction the shipping company should take, after which they engaged in a bidding war. Frederiksen eventually regained control of Euronav and changed the company name to CMB.TECH last year.

CMB.TECH, whose slogan is ‘Decarbonize Today, Navigate Tomorrow’, judges that it is safer to bet on various types of ships with various types of engines, including green hydrogen and ammonia, rather than putting all your eggs in one basket—the fossil fuel basket.

More growth opportunities

Golden Ocean, which was spun off from Frontline in 2004 and is headquartered in Bermuda, is listed in Oslo and New York. Under the merger, shareholders would receive 0.95 newly issued shares of CMB.TECH per share of the dry bulk carrier.

Once the deal is complete, CMB.TECH shareholders’ stake will dilute to 70% of the merger company, while Golden Ocean shareholders will control the remaining 30%. Golden Ocean will then disappear from Euronext Oslo and the Nasdaq. CMB.TECH will then pursue a listing in Oslo in addition to its listings in Brussels and New York.

Fleet of 250 vessels

`As already cited, CMB.TECH, with a diverse portfolio of over 150 seagoing vessels, wants to transform from a specialist in oil transportation to a diversified maritime group with a focus on decarbonization. According to CEO Alexander Saverys, the combined fleet would consist of “over 250 modern vessels spread across five shipping divisions.”

“The value of our fleet would reach over 11 billion dollars, and combined with our stock market listings and improved liquidity in our shares, we will have all the clout we need to continue investing in our fleet and seizing opportunities.”

Golden Ocean CEO Peder Simonsen points out that the Norwegian shipping company’s fleet is “highly complementary” to CMB.TECH’s dry bulk vessels. “This transaction enables us to offer our customers an even broader range of services, give our employees more growth opportunities and, last but not least, create sustainable value for our shareholders.”