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Norwegian tanker shipping merger announced

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Norwegian tanker shipping merger announced

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The Norwegian shipping group Camillo Eitzen is to buy its rival Songa Shipholding for a total of one billion euros.

The merger will form one of the biggest chemical transportation tanker groups in the world.

The joint fleet will be 66 vessels with a further 43 on order for delivery over the next four years.

Songa is based in Singapore, but controlled by a Norwegian businessman, Arne Blystad, and it has
offices in Oslo, Westport, Connecticut in the US and Glasgow in the UK.

The acquisition will be financed through a combination of equity, debt, bonds, cash and assumption of debt.

The combined company will be listed separately on the Oslo stock exchange and the exact composition of debt and equity will depend on the success of the initial public offering of shares in Oslo, which should be completed by 31 October.