At the end of June, the National Shipping Company of Saudi Arabia (Bahri) announced plans to merge with Saudi ARAMCO’s shipping arm, Vela International, and as of Sunday 4 November, the merger agreement has been signed.
Execution of the merger agreements took place in Riyadh after the closing of trading on the Saudi Stock Exchange (Tadawul) and follows the announcement by Bahri on 20 October 2012 of the parties’ agreement on the terms and conditions of the Transaction and approval of such terms and conditions by the parties respective boards of directors.
Under the terms of the merger, Vela will transfer to Bahri the full ownership of its entire fleet of vessels, which consists of 14 very large crude carriers (VLCCs), a floating storage VLCC, one Aframax tanker and four product tankers. In addition, Vela’s vessel-based personnel and a number of shore-based personnel will transfer to Bahri. Post-Transaction, the shipping businesses of Vela will be integrated within Bahri’s corporate structure.
Further details on this transaction can be found here: http://gcaptain.com/bahri-saudi-aramco-contemplate/