The Antwerp-based maritime group CMB.TECH is acquiring Golden Ocean, the Norwegian dry bulk shipping company. The acquisition, not a traditional cash acquisition but a merger through a share exchange, was approved yesterday by Golden Ocean’s shareholders during an extraordinary general meeting in Hamilton, Bermuda’s capital.
The merger will make CMB.TECH one of the largest listed maritime groups in the world, both in terms of the number of ships, capacity, and its green transition efforts.
Fleet of more than 250 ships
As a result of the merger, Compagnie Maritime Belge (CMB), formerly Euronav, now has a fleet of more than 250 ships, including 115 dry bulk carriers.
Before the merger, CMB.TECH had a fleet of over 160 ships, comprising tankers, dry bulk carriers, container ships, chemical tankers, offshore wind vessels, and workboats. Golden Ocean’s fleet consisted of 89 dry bulk carriers. Together, all ships have an estimated value of $11 billion.
The combined market value of the new company is structured through the Bermuda-based subsidiary CMB.TECH Bermuda Ltd. stands at €3.2 billion.
Hydrogen engines and ammonia-powered vessels
Golden Ocean currently transports mainly iron ore, as well as coal, grain, and steel. CMB.TECH predicts that these markets will continue to grow in the years to come. Additionally, most bulk carriers at sea are pretty old, making this a favorable time for the Antwerp-based company to invest.
Even though CMB.TECH is very active in the fossil fuel markets; it is firmly committed to using hydrogen and ammonia fuels in the future. This decarbonization of shipping, supported by R&D in hydrogen engines and ammonia-powered vessels, as well as a $1.2 billion offshore wind farm, is one of CMB’s pet projects. TECH CEO Alexander Saverys.
CMB.TECH, for example, is developing technologies for ships that run on hydrogen for smaller applications and ammonia for larger vessels. The ship Yara Eyde, for example, will be the world’s first container ship powered by clean ammonia.
It is a 1,400 TEU ice-class ship being built in China, with delivery expected by mid-2026. And CMB.TECH’s policy involves not only the use of these clean fuels but also their production and distribution.
Expected profit growth of 25%
The merger aims to achieve roughly $200 million in annual cost savings by 2027, primarily through economies of scale in procurement, integrated fleet utilization, and shared infrastructure and maintenance systems. This is expected to result in a 25% profit growth and EBITDA margins exceeding 15% for 2027, surpassing industry averages.
However, not everything is set in stone yet regarding the merger. Some Golden Ocean shareholders disagree with the merger, which consists of a share exchange, and have taken legal action. They feel underpaid and want to have the value of their shares independently assessed.
Additionally, there is a large bank loan, specifically a term loan of $1,250 million and a revolving credit facility of $750 million, both of which the companies entered into with a syndicate of banks and which still require approval.
Golden Ocean will disappear from the Oslo and Nasdaq stock exchanges in any case. For each Golden Ocean share, you will receive 0,95 shares of CMB.TECH. This will bring 96 million new shares onto the market in one fell swoop. CMB.TECH may be listed on the Brussels, New York, and Oslo stock exchanges in the future.
Exemplary player
To clarify, MSC (Mediterranean Shipping Company), MOL (Mitsui O.S.K. Lines), and NYK (Nippon Yusen) are unrivaled global leaders in terms of fleet size, each with nearly 900+ ships. Other major players, such as Maersk (715) and CMA CGM (658), follow at a distance. However, most of these big maritime players specialize in container shipping.
CMB.TECH, with Golden Ocean on board, does not belong to that elite in terms of total vessels, but its strength lies more in strategic diversification than in pure volume per ship. And above all, their initiative to make not only the ships but also the fuel chain sustainable makes them an exemplary player in the transition to sustainable shipping.
