Market vagaries may still buffet merging tanker heavyweights

Frontline-Euronav deal will create one of the world’s largest tanker fleets, but price-setting power may remain outside the combination’s reach

The merger of New York-listed shipowners Euronav and Frontline will create one of the world’s largest privately-owned tanker fleets and the biggest in the very large crude carrier (VLCC) and Suezmax sectors. Shareholders from both companies have approved the deal, which will combine the shipowners under the name Frontline. Euronav and Frontline’s shareholders will own around 59pc and 41pc respectively of the new company, which will have a market cap of c.$4.2bn. The merger “would establish a market leader” in the tanker sector, says Frontline CEO John Fredriksen, as well as bring “significant synergies... and increase fleet utilisation”. The combined fleet will comprise 67 VLCCs, two of the