Euronav: Emergency arbitration after merger with Frontline failed

More specifically, Euronav is requesting to suspend such termination pending a determination on the merits pursuing primarily the specific performance of the combination agreement. Another request regarding such merits of Frontline having unilaterally terminated the Combination Agreement will be filed soon.

Euronav also reiterated its determination that Frontline’s unilateral action in pursuing the termination of the combination agreement has no basis under the terms of the combination agreement and that Frontline failed to provide a satisfactory reason for its decision to pursue termination.

After careful consideration, the Supervisory Board, entirely composed of independent directors, has considered that this decision is in the corporate benefit of Euronav

the company said.

On the other hand, Frontline received the emergency arbitration request for urgent interim and conservatory measures following its decision to terminate the combination agreement.

As it said, “Frontline is currently analysing this request with its legal advisors. Frontline once again confirms that its decision to terminate the combination agreement was entirely lawful.”

We remind that Frontline announced that it no longer pursues a combination between Frontline and Euronav, as Frontline has terminated the combination agreement it entered into with Euronav in this respect.

Frontline will also no longer seek a listing on Euronext Brussels, and has simultaneously with this notice published a separate notice withdrawing its intention to such voluntary conditional exchange offer.

The two companies announced the deal last year, aiming to create an oil tanker group with 146 vessels. Euronav had also received “a clear signal” from shareholders in support of its proposed deal.

However, Reuters reports that since the announcement of the planned merger, Euronav had clashed with its biggest shareholder Compagnie Maritime Belge (CMB), which tried to block it.