Tanker group Euronav disputes Frontline's right to halt merger (updated)

Frontline

11/01/2023 14:12

(Adds share move, Frontline comment)
    By Juliette Portala
       Jan 11 (Reuters) - Belgian oil tanker and storage group
Euronav  EUAV.BR  disputes Frontline's right  FRO.OL  to end a
merger agreement between the companies and is considering its
options, including arbitration and legal action, it said on
Wednesday.
    Oslo-listed oil transporter Frontline said on Monday that it
was cancelling the $4.2 billion combination deal, which would
have created the world's largest publicly listed tanker company.
    "Euronav has determined that Frontline's unilateral action
in pursuing the termination of the combination agreement has no
basis under (its) terms ... and that Frontline failed to provide
a satisfactory reason for its decision," the Antwerp-based group
said in a statement.
    Frontline, however, believes there are valid grounds for the
termination, Chief Executive Lars Barstad said in an email to
Reuters, and that the decision to cancel the deal was
definitive.
    "There is, of course, always a risk of differences of
opinion when an agreement is terminated by one of the parties,"
he added.
    Euronav said it was analysing its options and would take
"appropriate action ... including but not limited to potential
litigation and/or arbitration".
    Its shares, which plunged by about 20% after the news on
Tuesday, were up 4.9% at 1348 GMT on Wednesday after a brief
trading suspension.
    "Euronav has complied with its obligations under the
combination agreement and has done everything in its power to
make this transaction a success," the group added.
    Asked about the reasons for the merger withdrawal,
Frontline's Barstad said that "certain conditions and
assumptions under the agreement were not met".
 (Reporting by Juliette Portala
Editing Mark Potter and David Goodman)
 ((juliette.portala@tr.com ; +48 587 696 607))