Wilh. Wilhelmsen Holding and Wilh. Wilhelmsen have signed a letter of intent to merge ownership of the majority of their vessels and assets with Sweden’s Rederi AB Soya and Wallenius Lines.
The transaction will create a new holding company called Wallenius Wilhelmsen Logistics, which will absorb the companies’ joint ownership of Wallenius Wilhelmsen Logistics and American Roll-on Roll-off Carrier, which are 100% jointly owned by the parties; and of EUKOR Car Carriers, which is 80% jointly owned.
Wilh. Wilhelmsen Holding and Wallenius Lines will have equal 40:40 ownership in the merged company. The former company will issue new shares to Wallenius when merging the ownership.
Wallenius Wilhelmsen Logistics will take over Wilh. Wilhelmsen’s existing listing on the Oslo Stock Exchange. The proposed transaction is expected to close within the first quarter of 2017.
“The markets in which the jointly owned entities operate are going through rapid change and require a more agile and efficient business model. In addition to establishing one common owner and governance structure, the proposed merger is expected to enable synergies between $50m-100m by combining the assets and harvesting economies of scale, including more optimal tonnage planning, and administrative, commercial, and operational efficiencies between the entities,” Jan Eyvin Wang, president and CEO of Wilh. Wilhelmsen, said in a release.
Thomas Wilhelmsen, chair of Wilh. Wilhelmsen, and Diderik Schnitler, chair of Wilh. Wilhelmsen Holding, said they aim to “continue to be a world-leading player within the car and ro-ro segments and grow our logistics footprint to serve our customers”.
Once the merger is complete, EUKOR Car Carriers’ current CEO and president Craig Jasienski will become CEO of Wallenius Wilhelmsen Logistics.
Håkan Larsson, current chair of the steering committee for the three jointly owned entities, will be proposed as chair of the board.