The Frontline-Euronav tie-up has moved closer to reality, depending on which side you’re on, that is. And we explore what is spooking the container shipping market, the earnings benefits that are expected from scrubber-fitted fleets and what’s next for Nobu Su.
It almost seems like The Saverys clan and John Fredriksen are living in parallel but alternative realities when it comes to the Frontline-Euronav merger. According to the pro-takeover side, the deal is as good as complete, yet as far as the Saverys family is concerned, nothing will happen without their say-so.
Alex Saverys told TradeWinds this week that the merger remained “highly unlikely” without his family’s acquiescence as Euronav’s largest shareholder. He insisted that under Belgian law, an acquirer of a business cannot squeeze out a minority shareholder unless they own at least 95% of the stock.
Meanwhile, John Fredriksen revealed that he was “excited” about the deal that he said will create a “clear market leader”. Frontline will make a voluntary exchange offer for the shares of its Belgian partner, meaning it can complete a transaction with 50% plus one vote.
Amid the shipbroking personnel shake-ups we reported in recent days, a central figure in that process, Oil Brokerage chief executive James McNicol, spoke to TradeWinds about his firm’s ambitions. Following a series of hires from London-based rivals, the firm is also looking to expand its Singapore and New York desks. Oil Brokerage aims to have 40 to 45 brokers in place across the globe by the end of the year.
Fears about overcapacity are spooking the container shipping market at the moment, as tonnage levels hit 25m teu for the first time. Uncertainty saw liner operators lose their appetite for long-term fixtures this week, with buyers backing out of secondhand ship deals and pressure on charter rates.
Widening fuel spreads are helping to buoy the outlook on companies with scrubber-fitted ships, such as New York-listed Star Bulk. The world’s largest dry bulk owner has scrubbers fitted on 95% of its fleet, which should benefit the company’s earnings amid a price spread of almost $600 between high-sulphur fuel oil and very low-sulphur fuel oil, according to Deutsche Bank analyst Amid Mehrotra.
And finally, what does the future hold for disgraced former billionaire Nobu Su? The Taiwanese shipowner was released from Belmarsh prison in the UK, but his whereabouts are currently unknown. Meanwhile, his nemesis, Cypriot shipowner Polys Haji-Ioannou, is still trying to recoup $60m owed to him by Su following a court judgement.
