General Maritime Corporation and Navig8 Crude Tankers have entered into a definitive agreement to merge and form Gener8 Maritime Inc., creating one of the world’s largest Very Large Crude Carrier (VLCC) operators.
Gener8 Maritime will have a combined fully-delivered fleet of 46 vessels, comprised of 21 VLCC newbuildings and 25 vessels in operation including seven VLCCs, 11 Suezmaxes, four Aframaxes, two Panamax tankers, and one Handymax tanker, together comprising over 11 million deadweight tons with an average age of less than 5.5 years upon delivery of the newbuildings.
It is expected that Gener8 Maritime will contribute its crude tankers to established commercial pools managed by Navig8 Group. Gener8 Maritime will be incorporated under the laws of the Marshall Islands and headquartered in New York.
The existing General Maritime management team is expected to remain in place retaining executive management roles including Peter Georgiopoulos as Chairman and Chief Executive Officer, John Tavlarios who will become Chief Operating Officer and Leo Vrondissis who will remain the Chief Financial Officer of the combined company.
Two key members of Navig8 Crude, Gary Brocklesby and Nicolas Busch, are expected to become senior consultants to the board of directors and the management team focusing on strategic and commercial matters.
The transaction is expected to close in the first half of 2015, subject to approval by the shareholders of each company and customary closing conditions.
“We are pleased to have reached this agreement with Navig8 Crude, which we believe will combine an established owner and highly-respected commercial operator on an unprecedented scale,” said Peter Georgiopoulos, General Maritime’s Chairman.