Frontline Ltd. of Bermuda and Euronav NV of Belgium announced their merger on April 7 to create the world’s largest oil tanker operators. This merger pushed China’s Cosco Shipping Energy Transportation out of the top position that it has held for more than three years.
The merged shipping company would continue to operate under the name Frontline, with a total market value of more than 4.2 billion dollars as of April 6.
John Fredriksen, former chairman and president of Frontline, said, “A combination of Frontline and Euronav would establish a market leader in the tanker market and position the combined group for continued shareholder value creation in addition to significant synergies.”
The newly merged giant controls 69 Very Large Crude Carriers (VLCC), 57 Suezmax vessels, and 20 Long-Range 2/ Aframax vessels. Total tanker capacity reaches 28.48 million deadweight tonnage (DWT).
Established in 1994, Cosco Shipping Energy Transportation Co., Ltd. changed to its current name in October 2016. Since then, it has been the world’s largest oil tanker fleet regarding both ship numbers and DWT.
As of January 20, 2021, Cosco Energy held 176 oil tankers with 24.81 million DWT.
The market value of Cosco Shipping Energy was 33.68 billion Hong Kong dollars (4.3 billion dollars) on April 10, compared to 4.6 billion dollars of the newly merged group.