Milaha and UACC Mull Tanker Fleet Merger
By Aiswarya Lakshmi
Tuesday, April 14, 2015
Qatar Navigation (Milaha) is in talks with United Arab Chemical Carriers Ltd. (UACC) in the United Arab Emirates (UAE) regarding a possible combination of their respective product and chemical tanker businesses.
Currently Milaha operates two chemical tankers and UACC has eight chemical tankers.
Milaha said the move is expected to result in a larger and stronger business, provide better financial returns, and strengthen the combined business market position, if the negotiation is successful.
Per Wistoft, UACC’s chief executive, confirmed that the two entities were in discussions. He said discussions were still in their early stages and that it was too early to say whether the deal would be a takeover or a merger.
Milaha holds 10.5% of the capital of the UACC, whose greater shareholder is the shipowning society United Arab Shipping Company (UASC).
The potential transaction remains subject to due diligence and corporate, regulatory and other necessary approvals.
The last big tanker merger in the region saw Bahri and Vela join forces in Saudi Arabia.