Athens: General Maritime Corporation and Navig8 Crude Tankers have entered into an agreement to create Gener8 Maritime Inc, a joint venture that will operate the world’s largest fleet of VLCCs.
Gener8 Maritime will be formed through a stock-for-stock merger transaction between the two existing companies, whereby a new subsidiary of General Maritime will acquire all of the issued and outstanding common stock of Navig8 Crude, a statement said today.
Gener8 Maritime will have a 46-vessel fleet totalling over 11m dwt once all deliveries arrive. The fleet will comprise 21 VLCC newbuildings plus 25 vessels in operation including seven VLCCs, 11 suezmaxes, four aframaxes, two panamax tankers and one handymax tanker. Each vessel will have an average age of less than 5.5 years.
Once vessels have completed their current employment commitments, Gener8 Maritime is expected contribute its crude tankers to commercial pools managed by Navig8 Group.
“We are pleased to have reached this agreement with Navig8 Crude, which we believe will combine an established owner and highly-respected commercial operator on an unprecedented scale,” said Peter Georgiopoulos, General Maritime’s chairman, said in a statement.
“Together, Gener8 Maritime will be well-positioned to take advantage of improved market conditions and increasing average voyage lengths with one of the largest, youngest, and most efficient fleets in the industry,” he continued.
Gener8 Maritime’s board will consist of the existing General Maritime executive management, with Peter Georgiopoulos as chairman and CEO, John Tavlarios as COO and Leo Vrondissis who will remain CFO. In addition, Gary Brocklesby and Nicolas Busch from Navig8 Crude will be senior consultants to the board for strategic and commercial matters.
The merger is expected to be completed in the first half of this year, subject to shareholder approval and closing conditions.
Gener8 Maritime will be incorporated under the laws of the Marshall Islands and headquartered in New York.