International Seaways, Diamond S merger to create second largest US tanker operator
The respective boards of directors of US shipping companies International Seaways and Diamond S Shipping have unanimously approved a definitive merger agreement pursuant to which both companies will merge in a stock-for-stock transaction.
Subsequent to the merger, International Seaways and Diamond S shareholders will own approximately 55.75 per cent and 44.25 per cent of the combined company, respectively, using fully diluted share counts as of March 30, 2021.
The merger will result in what International Seaways has claimed as the second largest US-Listed tanker company by vessel count and the third largest by deadweight. On a pro forma basis, the combined company will have 100 vessels and an enterprise value of approximately US$2 billion.
International Seaways said the merger will also enhance its capabilities in both the crude and product markets and enable it to establish a foothold in the large crude – VLCC and Suezmax – LR1/Panamax, and MR markets.