Merger Arbitrage Mondays – Euronav And Frontline To Combine In An All Stock Deal

Merger activity increased last week with six new deals announced, one deal completed and one merger that fell apart. One of the deals announced last week was a potential deal in the works. We added Euronav (EURN) as a potential deal in the works on April 7, 2022, when Frontline (FRO) and Euronav announced that the companies had signed a term sheet on a potential stock-for-stock combination, that would result in Euronav and Frontline shareholders owning approximately 59% and 41% of the combined company respectively. Euronav started operating as a subsidiary of CNN (Compagnie Nationale de Navigation) under the name ‘Euronav’ in 1989. In 1995, a joint venture called Euronav Luxembourg SA was formed between Compagnie Nationale de Navigation (CNN) and Compagnie Maritime Belge (CMB) to consolidate all the tanker activities of CNN. CMB is controlled by the Belgian family Saverys. The proposed merger between Euronav and Frontline was opposed by Alexander Saverys, scion of the Belgium shipping family that holds a near-20% stake in Euronav. He proposed that Euronav instead merge with the clean shipping division of his company. On May 19, 2022, Euronav said that its shareholders voted to reject a proposal from Compagnie Maritime Belge to nominate three supervisory board members. As merger plans...

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