In continued tanker shipping consolidation International Seaways has completed its merger with Diamond S Shipping.
The combined company will continue to operate as International Seaways and trade on the New York Stock Exchange under the symbol INSW.
The Company expects to achieve cost synergies in excess of $23m and revenue synergies of $9m, which are expected to be fully realisable within 2022.
International Seaways is now the second largest US-listed tanker company by vessel count with over 100 vessels and the third largest by deadweight, aggregating approximately 11.3m dwt.
INSW shareholders own approximately 55.75% of the equity of the combined company and former Diamond S Shipping stockholders own approximately 44.25%.
“We are pleased to complete this transformational and highly accretive transaction, solidifying our position as a diversified tanker sector bellwether,” said Lois Zabrocky, INSW’s President and CEO.
“With enhanced scale, financial strength and commercial expertise, we have markedly strengthened our position to capitalise on favourable long-term industry fundamentals in both the crude and product markets. As we integrate the combined company, our focus will remain on further executing our balanced and accretive capital allocation strategy, while upholding our best-in-class ESG track record and continuing to deliver safe and efficient transportation of energy cargoes for our world-class customers,” added Zabrocky.
The merger comes at a time when tanker rates are at some of their lowest levels in over 20 years.
Source: Seatrade Maritime