Euronav’s attempts to merge with Frontline, a Norwegian competitor in the same sector, have been met with opposition from the Belgian oil tanker shipping company’s major shareholder. According to a news release, the Saverys founding family prefers a greening plan.
It was announced yesterday that the merger will make Euronav and Frontline a global leader in the oil tanker business. Hugo De Stoop, the CEO of Euronav, would become the amalgamated company’s CEO.
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Shipping magnate John Frederiksen, Frontline’s largest shareholder, had previously built up a stake in Euronav. However, the Belgian shipping business CMB, which is owned by the Savereys shipping family of Antwerp, is Euronav’s major stakeholder.
As a result, the founding family rejects the merger plans. In a news statement, CMB criticizes Euronav’s current strategy, which concentrates primarily on the transportation of crude oil in a world in desperate need of quick greenhouse emission reductions.
CMB aims to persuade shareholders to change their minds. “CMB proposes a strategy to gradually shift Euronav’s fleet away from crude oil transportation and toward greening and decarbonizing shipping and heavy industry.” The company’s exclusive emphasis on fossil fuels, as well as the geopolitical dangers linked with it, may threaten its future.”