CMB.TECH Completes Merger of Golden Ocean, Creating 250 Ship Fleet

CMB.TECH has successfully finalized its merger with Golden Ocean Group, a move that significantly enhances its fleet and positions the company as a leader in the maritime industry. The merger, ratified by shareholders, marks a pivotal step in CMB.TECH’s strategy to diversify its operations and adapt to the evolving energy landscape in shipping. As of August 19, Golden Ocean’s stock ceased trading on NASDAQ and Euronext Oslo Børs, transitioning its assets into CMB.TECH’s portfolio.

Details of the Merger Agreement

The merger agreement stipulated that each outstanding common share of Golden Ocean would be exchanged for nearly 96 million newly issued ordinary shares of CMB.TECH. Specifically, the exchange ratio was set at 0.95 ordinary shares of CMB.TECH for each common share of Golden Ocean. Following the merger, CMB.TECH also initiated a listing on the Euronext Oslo Børs, while continuing its presence on the New York Stock Exchange and Euronext Brussels. This strategic move is expected to enhance liquidity and bolster investor confidence in the newly formed entity.

Alexander Saverys, CEO of CMB.TECH, expressed his enthusiasm about the merger, stating, “Today, we are delighted to close the merger between CMB.TECH and Golden Ocean.” He highlighted the rapid transformation of CMB.TECH from a crude oil tanker company into a diversified maritime group within just 18 months. The merger aligns with CMB.TECH’s vision of building a robust fleet capable of navigating the future of shipping, particularly in light of increasing decarbonization efforts and regulatory changes aimed at reducing greenhouse gas emissions.

Before the merger, CMB.TECH operated a fleet of over 160 vessels across various sectors, including crude oil tankers and dry bulk carriers. The addition of Golden Ocean’s 89 dry bulk vessels, which boast a total capacity of approximately 13.5 million deadweight tonnes, significantly strengthens CMB.TECH’s position in the dry bulk market. The combined fleet now consists of around 250 vessels, with an average age of just over six years, making dry bulk the largest segment of the group’s operations.

Future Prospects and Industry Impact

The merger not only consolidates CMB.TECH’s fleet but also positions the company to capitalize on emerging opportunities within the maritime sector. Saverys noted that the combined fleet’s value exceeds $11 billion, providing the necessary resources to invest in further fleet expansion and innovation. He emphasized the importance of decarbonization, stating that the company’s focus in this area is already yielding substantial long-term contracts.

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As the shipping industry faces increasing pressure to reduce its environmental footprint, CMB.TECH’s strategic initiatives are well-timed. The recent International Maritime Organization (IMO) decisions to limit greenhouse gas emissions from shipping further bolster the company’s commitment to sustainability. Analysts suggest that the merger may lead to potential divestitures within the dry bulk fleet, as CMB.TECH seeks to optimize its operations and enhance overall efficiency.

This merger marks a significant milestone for both CMB.TECH and Golden Ocean, bringing Golden Ocean’s operations full circle two decades after it was established as an independent bulker operator. Originally part of Frontline, Golden Ocean was spun off in 2005, and its integration into CMB.TECH represents a new chapter in its evolution within the maritime industry.