New York-listed Teekay Tankers had been considered favourite to win the race for the ships, in a field that included Stena and Tsakos Energy Navigation.

Kevin Mackay, chief executive of Teekay Tankers, said in a statement: "The acquisition of this high quality, on-the-water fleet is strategically important for Teekay Tankers and provides significant commercial and financial benefits.

"Teekay Tankers will become one of the largest owners of modern suezmax tankers at the right point in the tanker market cycle when positive market fundamentals support continued strength in spot tanker rates.

"Including the five aframax tankers we acquired earlier this year, this acquisition will increase Teekay Tankers' owned fleet by over 60% and solidifies our position as the largest owner and operator of mid-size crude oil tankers.”

The Princimar fleet more than doubles Teekay Tankers’ suezmax fleet to 22, with its overall tally raised to 44 vessels.

In terms of listed rivals, Euronav has 23 suezmaxes and pure play Nordic American Tankers has 26, including two newbuildings.

Cash and shares deal

Financing for the long-anticipated deal, after what has been a complex sales process, is already in place.

A $400m debt facility has been locked down, while Principal is also taking $50m worth of shares in the buyer.

Teekay Corporation has taken a further $60m worth of shares in its daughter company and institutional investors $60m.

“With a larger fleet, we are better positioned take advantage of the growing demand for suezmaxes resulting from greater long-haul suezmax movements from the Atlantic to Pacific basins as well as the niche intra-regional voyages that are increasingly stretching suezmax tonnage supply," Mackay said.

Teekay Tankers has had an aggressive growth plan for some time and late last year revealed it was looking at a deal which would have seen it more than double in size. Those talks, understood to have been with AET, ended earlier this year with Teekay Tankers empty handed.

Spring sale

Apollo has been seeking an IPO for Princimar and filed papers for a listing last year. In May 2015 it placed the fleet up for sale.

Princimar, led by veteran tanker man Arthur Regan, recorded a profit of $3.74m last year, against a loss of $27.47m in 2013.

It began to build up in 2010 and was one of the first shipowners to attract a major private-equity sponsor.

A sales process was conducted by UBS, which was lead underwriter on Principal’s IPO.