The deliberate merger between tanker giants Euronav and Frontline won’t go fairly as simply as its architects may want. Euronav’s largest shareholder, the Saverys household’s Compagnie Maritime Belge (CMB) is against the deal, which might see Frontline founder John Fredriksen emerge as the biggest shareholder within the merged enterprise.
“This isn’t a merger, however an acquisition by Vikings,” Belgian newspaper Gazet van Antwerpen quotes CMB CEO Alexander Saverys as saying.
“CMB questions the present technique of Euronav, which focuses solely on the transportation of crude oil in a world the place decarbonization is of paramount significance,” the Antwerp-based firm mentioned in a extra formal assertion, “CMB doesn’t imagine a mix with Frontline will create added worth for Euronav’s stakeholders.”
CMB says it had made contacts with Euronav’s supervisory board and administration by which it had made proposals to vary the corporate’s present technique.”
FOSSIL FUELS AND GEOPOLITICAL RISK
“The unique deal with fossil fuels and the geopolitical dangers related to the enterprise can put the way forward for the corporate in jeopardy,” mentioned CMB, including that it “wish to remodel Euronav right into a Europe-based marine and industrial clean-tech powerhouse with a diversified fleet. The proceeds of Euronav’s present enterprise ought to be reinvested in inexperienced hydrogen and ammonia ships and functions, and new sort of vessels that carry the fuels of the long run.”
In a press release paying attention to CMB’s place, Euronav mentioned:
“We now have taken the choice to mix with Frontline as a result of we imagine it’s the most worth creating technique accessible, by means of maximizing service ranges and realizing vital synergies, by way of enterprise and sustainability. This mix would assemble a number one world impartial tanker operator, bringing collectively two complementary platforms in a extremely aggressive setting and making a single best- in-class, extremely competent and skilled management staff.
“Euronav welcomes all dialogue associated to the decarbonisation of the marine transportation business and has been a number one participant on this course of. We now have fastidiously established a decarbonisation technique, of which the foundations have already been laid years in the past. Euronav seems to be ahead to updating all stakeholders on our sustainability technique, together with particular decarbonization targets, on Could 5, 2022. The mixed enterprise would supply a platform that might lengthen Euronav’s main place in sustainable transport and would enable the mixed firm to additional advance Euronav’s business main sustainability practices.”
“On a sensible stage, the worldwide financial system will nonetheless require crude oil for a few years to return as the worldwide vitality transition advances,” notes Euronav. “The proposed mixture with Frontline can be a worthwhile and sustainable custodian on this course of.”