Oslo-listed mini-bulker owner Wilson is driving more consolidation in the European shortsea market with a deal to buy the fleet of Germany's Rhenus Maritime Services (RMS).
The deal will see six dry cargo carriers of between 1,800 dwt and 3,800 dwt join the Wilson fleet, plus another four to six bulkers on short fixed-term charters.
The ships have an average age of 17 years. Two of these are already operated by Wilson.
No price has been reported, but valuation platform VesselsValue lists nine ships under RMS' control and estimates they are worth $37m.
Wilson is also buying RMS' contract portfolio to strengthen its European presence.
"It's much-needed consolidation in the shortsea sector in Europe," Wilson's chief financial officer Stig Vangen told TradeWinds. "This is part of the long-term strategy of the company."
"It has been a long process. We're talking years," he added.
Vangen said the leases for the ships it is not buying are time-limited and will be up for renegotiation in the future.
"We are very positive about the market and the strategy of the company is to expand in the shortsea sector, so we will continue to try," the CFO added.
The agreement will secure Wilson's capacity and strengthen logistics systems so that the company is well equipped to serve European industry in the future, the shipowner believes.
A larger system will increase efficiency, reduce ballast and expand the European network in line with Wilson's growth strategy, the company added.
The transaction is expected to be completed in 2021 or at the start of 2022.
"The company considers the transaction to be favourable in the current market situation," Wilson said.
After the deal completes, Wilson will operate a fleet of more than 130 ships, of which almost 100 are owner-controlled.
Arkon merger
Last year, Wilson teamed up with Arkon Shipping of Germany to create a giant in the European coastal dry bulk trade.
The move established the largest shortsea player in Europe.
Bergen-based Wilson took over the long-term leases on around 20 small bulk carriers from Arkon's coastal fleet, including a series of newbuildings for delivery in a year's time.
The Oslo-listed owner also took over all contracts and commitments performed by Arkon.
Arkon's bulker operations, based in Haren in northwest Germany, were integrated into Wilson's chartering system. Arkon will handle export fixtures for the Wilson fleet in the Mediterranean.
In April, a new heavylift company was created in northern Europe following a tie-up between RMS and Arkon Shipping & Projects.
Germany's Rhenus bought a stake of 60% in its compatriot, forming RMS Projects to run a fleet of 20 multipurpose heavylift cargo vessels.
The new venture was announced days after a merger between Jumbo Shipping of the Netherlands and Germany’s SAL Heavy Lift created a fleet of 30 heavylift and breakbulk ships.
