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id: 530, Created by Stan Vick, Scout
Frontline breaks off its deal with Euronav Case
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on January 9, 2023, Frontline announced that it had terminated its combination agreement with Euronav and not pursuing an acquisition, so shareholders should no longer expect the company to make a conditional exchange offer to acquire Euronav stock.
On this news, Euronav stock plunged over 15% wiping out almost $0.5 billion of the company's capitalization.
Frontline CEO Lars Barstad expressed regret that the merger plan wasn't able to go forward because the deal could lead to the creation of the largest publicly traded tanker shipping company.
Different media were speculating that Euronav's major shareholder failed to reach an agreement with its counterparts at Frontline regarding the future strategy for the combined company.
- That was particularly troublesome at the moment because sanctions imposed on Russia after its invasion of Ukraine have had a dramatic impact on the tanker shipping industry worldwide.
- Euronav has been more proactive about addressing the carbon emissions impact of its shipping fleet, and its owners appeared to be concerned about possibly losing that differentiating emphasis if Euronav and Frontline were to combine.
Breach of Fiduciary duty,
Shock Event Date
09 January 2023