Aramco's Vela to merge with Bahri in $1.3bn deal
Kingdom amalgamates crude oil fleets to make world?s fourth largest
The National Shipping Company of Saudi Arabia (Bahri) has agreed to merge Saudi Aramco subsidiary Vela International Marine, the sixth-largest very large crude carrier (VLCC) owner in the world.
The deal, in which Saudi Aramco has agreed to sell Vela to Bahri for $1.3bn in cash and shares, will make Bahri the world's fourth-largest owner of VLCCs.
Under the agreement, Bahri will also become the sole provider of VLCC shipping services to Saudi Aramco for crude oil deliveries, in a contract period initially set to last 10 years.
Vela has a fleet consisting of 14 VLCCs, a floating storage VLCC, one Aframax tanker, and four product tankers. Bahri is paying $833m in cash and $78.8m in Bahri stock, at a price of $5.93 per share.
The merger of ships, staff and business systems brings Bahri's fleet to 77 vessels, including 32 VLCCs.