In a move that’s set to send ripples through the maritime industry, CMB.TECH and Golden Ocean have inked a term sheet for a stock-for-stock merger. This isn’t just any merger; it’s a power play that could reshape the sector’s landscape. CMB.TECH, the surviving entity, will absorb Golden Ocean, creating a behemoth with a combined fleet of over 250 vessels. This isn’t just about size; it’s about strategy, diversification, and a bold step towards decarbonisation.
Let’s break it down. CMB.TECH, with its diversified fleet and green ambitions, is merging with Golden Ocean, a dry bulk specialist. The exchange ratio is 0.95 shares of CMB.TECH for each share of Golden Ocean. Post-merger, CMB.TECH shareholders will own about 70% of the combined company, while Golden Ocean shareholders will hold around 30%. This merger isn’t just about numbers; it’s about synergy. CMB.TECH’s CEO, Alexander Saverys, puts it bluntly, “It’s full speed ahead to decarbonise today to navigate tomorrow!”
The merger will create one of the largest diversified listed maritime groups globally. But what does this mean for the industry? For starters, it’s a clear signal that size matters. Bigger fleets mean better economies of scale, increased bargaining power, and enhanced market presence. But it’s not just about bulking up; it’s about diversifying. The combined fleet will span crude oil tankers, dry bulk vessels, container ships, chemical tankers, offshore wind vessels, and workboats. This diversification is a hedge against market volatility and a strategic move towards a greener future.
Decarbonisation is the elephant in the room. The International Maritime Organization’s (IMO) recent decisions on limiting greenhouse gas emissions from shipping have put the industry on notice. CMB.TECH and Golden Ocean are not just talking the talk; they’re walking the walk. The merger will accelerate their decarbonisation efforts, with a focus on hydrogen and ammonia fuel. This isn’t just about compliance; it’s about seizing opportunities. As Saverys notes, “The value of our fleet would reach more than 11 billion USD… we will have all the necessary firepower to continue to invest in our fleet and seize opportunities.”
But it’s not all smooth sailing. The merger is subject to customary conditions, including regulatory approvals and shareholder votes. Moreover, Golden Ocean will delist from NASDAQ and Euronext Oslo Børs, while CMB.TECH will pursue a secondary listing on the Euronext Oslo Børs. This is a complex dance, and both companies will need to navigate it carefully.
The merger also raises questions about the future of the maritime industry. Will we see more consolidation? How will smaller players compete? And how will the industry adapt to the decarbonisation challenge? These are not just academic questions; they’re the stuff of boardroom debates and late-night strategising.
The maritime industry is at a crossroads. The CMB.TECH-Golden Ocean merger is a bold step into the future. It’s a testament to the power of diversification, the importance of size, and the urgency of decarbonisation. But it’s also a call to action. The industry must adapt, innovate, and collaborate. The future is here, and it’s time to set sail.
