Norwegian tanker shipping giant Frontline has shelved its plans to purchase its US-based rival Gener8 Maritime, the Wall Street Journal reported.
Fredriksen said earlier that he was looking into the purchase of a ship operator that ran at least 20 VLCCs, with Gener8 Maritime being singled out as the likely candidate.
A vessel combination deal between Frontline and Gener8 Maritime, which operates a fleet of 23 tankers, would have created the world’s biggest tanker fleet, featuring 43 very large crude carriers.
Frontline was linked with Gener8 Maritime after the Norwegian firm abandoned plans to acquire DHT Holdings after a number of unsuccessful bids for outstanding shares of common stock in the compatriot tanker owner.
However, DHT’s Board turned down several offers from Frontline, deeming them inadequate.
Following the latest dismissal of legal action against DHT Holdings by the Marshall Islands court, Frontline seems to have admitted defeat and is moving on.
“We will not spend time pursuing the DHT track,” Reuters reported earlier today citing Frontline’s Chief Executive Robert Hvide Macleod as saying.
Furthermore, prompted by the current market conditions in the sector, Fredriksen’s firm reportedly decided to abstain from merger and acquisition moves for the time being.
World Maritime News Staff