Singapore-listed marine fuel supplier Chemoil Energy has acquired marine fuel business OceanConnect for about US$25 million.
The acquisition is expected to increase Chemoil's fuel-related transactions by an estimated eight to nine million metric tonnes per year.
"The rationale for the acquisition was to bring within the Chemoil fold, and in a much shorter timeframe than organic growth could achieve, a sizeable and reputable unit which enhanced Chemoil's existing business and improved its (customer) service," said Chemoil in a statement.
The deal includes OceanConnect's marine fuel business, its independent online bunker auction portal and its bunker brokering and trading desks in the United States, United Kingdom, United Arab Emirates, South Korea, Japan and Denmark. A total of 38 OceanConnect brokers and marine fuel traders will join Chemoil as part of the deal.
OceanConnect's former chief executive officer Tom Reilly has been named Chemoil's new CEO and director effective January 3.
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