Frontline terminated its proposed merger with Euronav earlier this week following six months of negotiations after signing a combination agreement in July. Although supported by the majority of Euronav’s board the proposal was strongly rejected by the Saverys family which owns a 25% stake in Euronav.
In a statement Euronav said Frontline had failed to provide a satisfactory reason for its decision to pursue a termination of the agreement. “Euronav has complied with its obligations under the combination agreement and has done everything in its power to make this transaction a success,” it stated.
The next step from Euronav in the fractious merger attempt could be legal action. “The Supervisory and Management Boards are in the process of analysing the Company’s options and will take appropriate action to protect and preserve the rights and interests of Euronav and its stakeholders, including but not limited to potential litigation and/or arbitration,” Euronav said.
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