Tanker firm International Seaways (INSW) has concluded the all-stock merger deal valued at around $416m with energy shipping company Diamond S Shipping (DSSI).
The company anticipates cost synergies of over $23m and revenue synergies of around $9m through the merger, which are expected to be achieved within the next year.
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Former DSSI stockholders hold around 44.25% of the equity of the combined firm while pre-merger INSW shareholders own nearly 55.75%.
On 15 July, the pre-merger INSW shareholders were offered a special dividend of $1.12 per share.
The combined entity has an enterprise value of nearly $2bn and a workforce of over 2,200.
INSW president and CEO Lois Zabrocky said: “With enhanced scale, financial strength and commercial expertise, we have markedly strengthened our position to capitalise on favourable long-term industry fundamentals in both the crude and product markets.
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By GlobalData“As we integrate the combined company, our focus will remain on further executing our balanced and accretive capital allocation strategy while upholding our best-in-class ESG track record and continuing to deliver safe and efficient transportation of energy cargoes for our world-class customers.”
After this merger, INSW claims to be the second-largest US-listed tanker firm, with a vessel count of more than 100 ships.
It is now also claimed to be the third-largest by deadweight, aggregating around 11.3 million deadweight tonnes.
In a statement, INSW said: “The merger enhances INSW’s capabilities in both the crude and product markets and creates “power alleys” for INSW in the large crude VLCC and Suezmax, and LR1/Panamax and MR markets.”
As of now, INSW owns and runs a fleet of 102 ships, including 15 Suezmaxes, 13 VLCCs, five Aframaxes/LR2s, 13 Panamaxes/LR1s, 48 MR tankers and six Handy tankers.
