Norwegian shipbroking giant Fearnleys is in talks to buy UK-headquartered Ocean Shipbrokers as the company looks to splash its cash on growing its broking arm globally.
Multiple well-placed sources in the global shipbroking community said Fearnleys is set to take over Ocean, with several indicating to TradeWinds that a deal has been agreed in principle between the two companies.
“It is happening,” one senior tanker source said, detailing that Ocean shareholders have opted to sell the business. Ocean director Ed Romer-Lee is understood to have resigned from the company.
But others were more cautious on whether the deal would go through, saying that while there has been an ongoing conversation between the pair for the last couple of months some “bumps in the road” remain over “getting the numbers to stack up”.
Sources told TradeWinds that the Astrup Fearnley group is keen to invest “quite heavily” in its shipbroking activities and also has its eyes on other purchases in the US.
In London, rumours are circulating that Fearnleys also has Charles R Weber in its sights, with another well-known US brokerage name also being bandied about as a possible target.
Astrup Fearnley group chief executive and Fearnleys CEO Marius Hermansen said the company does not comment on market talk and declined to speak about the potential expansion moves.
One of Ocean’s majority shareholders, Dan Gundy, was on holiday and about to go on a business trip when contacted but said he had no comment.
Fearnleys has been on manoeuvres recently, poaching staff from rivals to beef up its business in South America and the Middle East.
The company snatched three dry cargo brokers specialising in capesize business from rival shop Braemar to set up a new office in Sao Paolo, Brazil. The Oslo-based outfit also snaffled another Braemar broker for its Dubai operations.
But a buyout of Ocean would take its expansion plans to a new level.
Fearnleys has a relatively small team in London, with 12 brokers covering LNG, LPG, tankers and sale and purchase.
Ocean, which was formed in 2006, made a name for itself in tanker broking and was at one time seen as particularly close to trading house giant Glencore.
It expanded its operations out into S&P and gas, boasting a staff of over 30 with offices in London, Geneva, Dubai and China.
From its most recent results for the year to the end of June 2022 filed with the UK’s Companies House, Ocean had net assets of £1.6m.
Competing brokers have spoken highly of Ocean, which was at one time seen as the next privately held, hard-working shop that was ripe for serious expansion.
But this week one long-serving tanker broker commented that it is becoming “harder and harder to survive as an independent broker” in today’s world where the talk is of consolidation.
The widespread market rumours regarding Fearnleys and Ocean come hot on the heels of talk that Clarksons has been in discussions to buy Maersk Broker.
TradeWinds reported in July that Clarksons was undertaking due diligence on the rival brokerage.
Shipbroking industry players have since commented that Clarksons is keen on Maersk Brokers’ expertise in Japan, where the Danish shop has been working for over 30 years.
But since then no further details have emerged of the rumoured buyout plan.
The recent discussions by Fearnleys and Clarksons with other brokerages follow one of the largest broker consolidation moves in recent years.
In January, dry bulk-focused Ifchor and historic London shipbroking name, tanker and S&P specialist Galbraiths sealed their planned merger, creating a new 300-person strong global shop with 21 offices worldwide.
