Mergers are afoot in the US domestic tanker trades: following the Diamond S Shipping and International Seaways deal, OSG is put in play
As a public company listed on New York Stock Exchange, OSG is obliged to list particulars of the approach for a merger or acquisition. In a statement, the company revealed “a non-binding indication of interest to acquire all of the issued and outstanding shares of common stock of the company for a price of US$3 per share, OSG’s board of directors has commenced a strategic process to explore, review and evaluate a range of alternatives available to the company to enhance shareholder value, including the non-binding indication of interest.”
Business media has named Saltchuk, a holding company for Tote Maritime, as the company behind the offer. Saltchuk holds several companies in the marine sector and in early 2021, completed acquisition deals with Centerline Logistics involving tug operating companies going one way and a ship refuelling business going the other.
Tote Marine is a shipping company serving Alaska and Puerto Rico container trades which employs 940 people and has a turnover in the region of US$784M per year. The company owns four LNG dual-fuel container ships and operates a further 20 vessels.
OSG has a fleet of 25 tankers and articulated tanker barges (ATBs), and mainly operates domestically under the US Jones Act. The fleet comprises 13 product tankers, four Alaska-serving crude oil tankers, four ATBs, and four non-Jones Act tankers.
The attempted acquisition follows on from the Diamond S Shipping and International Seaways merger.
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