Euronav Announces Fleet Acquisition Valued Nearly $1 Billion

Euronav officially announced today a signed contract to acquire fifteen Very Large Crude Carriers (VLCCs) from Maersk Tankers Singapore Pte Ltd for a total acquisition price of USD $980 million, payable upon delivery.

Euronav had suspended trading of shares since Monday of last week as news of this acquisition had been anticipated. This acquisition will more than double Euronav’s current fleet of 11 VLCCs.

Euronav notes that the tankers will be operated in the Tankers International VLCC Pool.

In a statement on their website, the company justifies the acquisition noting, “The outlook for the large crude tanker market has improved significantly over the last months indicating a resurgence of demand and an improved near term outlook. Euronav considers the acquisition as a first step towards a wider consolidation of the world tanker fleet, with the concurrent benefits of synergy and logistical enhancement to the benefit of all stakeholders.”

All but one of the deliveries are expected between January and June of 2014. One vessel currently under charter will be delivered towards the end of the year.