$2 billion merger for International Seaways and Diamond S

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Image: Diamond S.
REKLAMA

Mega-merger to create one of the world’s largest energy transportation services for crude and oil products.

International Seaways (INSW) and Diamond S have announced a $2b merger that will create the second-largest US-listed tanker company by vessel count, with approximately 100 ships, and the third-largest by deadweight with a total of 11.31 million dwt.

The deal was a year in the making and will see Diamond S merge into INSW, which will continue to trade on the NYSE with its shareholders representing approximately 56 per cent of the company and Diamond S shareholders receiving 44 per cent of the company.

The combined company will have shipping revenues of over $1 billion on a pro forma basis, 2,200 employees and an enterprise value of approximately $2 billion.

Craig Stevenson Jr., current president and CEO of Diamond S, said: “As a long-time proponent of industry consolidation, I believe this transaction gives the combined company the scale and diversity necessary to hold the status as a leader in the tanker markets for years to come”.

“We are excited to enter into this transformational transaction and create an industry bellwether,” said Lois Zabrocky, INSW’s President and CEO. “By bringing together two leading US-based diversified tanker owners, we expect to deliver a number of compelling strategic and financial benefits to the stakeholders and customers of both companies…”

INSW will assume the net debt of Diamond S and the merger, which is expected in the third quarter of 2021, is subject to the approval of shareholders, regulatory bodies and customary closing conditions.

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