In a short press release, Euronav confirmed it had received a letter from Frontline pursuing the unilateral termination of the merger agreement between the two companies which was signed in July 2022.
“Euronav will examine such letter and reserves all rights and actions in this respect,” the company said.
Looking on the bright side, Euronav said it was well positioned to make the most of an ongoing tanker market recovery, regardless of the merger situation.
“The supportive and sustainable fundamental factors of the tanker markets have started to deliver (during Q3 and Q4 2022) what Euronav and most sector commentators believe will be a prolonged upcycle,” said Euronav.
Under the terms of the July agreement, which was unanimously accepted by both companies’ boards, the all-stock deal was set to launch in Q4 2022 by means of a tender offer.
In December, Euronav made a statement reaffirming its commitment to the merger despite Compagnie Maritime Belge (CMB) sending a request to one of Euronav’s supervisory board members that the merger be terminated.
CMB is Euronav’s largest shareholder after boosting its holding in the second half of 2022. The company has resisted the merger, with CMB CEO Alexander Saverys claiming the deal would be dilutive to Euronav shareholders and that the transaction was undervalued.
Euronav is set to release its fourth quarter earnings on February 2, 2023.
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