Belgian oil tanker group Euronav EUAV.BR and Oslo-listed rival Frontline FRO.OL have agreed to merge in an all-stock transaction valuing the combined firm at $4.2 billion, the companies said on Thursday.

Euronav’s shareholders will own 59% of the combined tanker group while Frontline’s owners will hold the remaining 41%, they said in a statement.

The merged company will use the Frontline name and be led by Euronav CEO Hugo De Stoop.

“A combination of Frontline and Euronav would establish a market leader …and position the combined group for continued shareholder value creation in addition to significant synergies,” Frontline’s largest owner John Fredriksen said.

“I am very excited and give my full support and commitment to this combined platform,” he added.

The transaction remains subject to agreements on the transaction structure and terms, due diligence and regulatory approvals, the companies said.
Source: Reuters (Reporting by Terje Solsvik; editing by Jason Neely)