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Frontline finalises merger with Frontline 2012

Frontline finalises merger with Frontline 2012
John Fredriksen’s flagship tanker company Frontline and sister company Frontline 2012 have today finalised their merger, with the latter to become a subsidiary of the former.

The closing of the merger is expected to take place following close of trade on the Oslo Stock Exchange and Norwegian OTC (Over the Counter) Market today.

Both partners recently reported strong financial quarters in Q3 with Frontline 2012, in particular, booking its “strongest third quarter ever” with a net income of $61.9m.

The combined entity will comprise 25 VLCCs, 21 suezmaxes, 20 MRs, three Aframaxes and seven LR2s, as well as bringing Frontline 2012's $1.38bn newbuilding list of 14 LR2s, six VLCCs and six suezmax newbuildings under the Frontline umbrella.

The merger was first announced back in the summer, just after the tanker market had taken turn for the better, and was flagged up as a prelude to growth through M&A activity.

"By merging Frontline and Frontline 2012 we will regain Frontline's position as a leading tanker company,” commented at the time John Fredriksen, chairman of both companies. “The combined company will have a large fleet and a strong balance sheet which puts us in a position to gain further market share through acquisitions and consolidation opportunities.”