Wilhelmsen Shipping and Wallenius Shipping have signed a merger to create Wilhelmsen Wallenius Logistics ASA.
Wilhelmsen and Wallenius have signed a letter of intent to establish a new ownership structure for their jointly owned investments.
Jan Eyvin Wang, President and CEO of Wilh Wilhelmsen ASA, said: “The markets in which the jointly owned entities operate are going through rapid change and require a more agile and efficient business model.
“In addition to establishing a common owner and governance structure, the proposed merger is expected to enable synergies between US$50-100 million by combining the assets and harvesting economies of scale, including more optimal tonnage planning, and administrative, commercial and operational efficiencies between the entities.”
The letter of intent states that the parties will combine their ownership in the jointly owned entities Wallenius Wilhelmsen Logistics (jointly owned 100%), EUKOR Car Carriers (jointly owned 80%) and American Roll-on Roll-off Carrier (jointly owned 100%) in a new entity to be named Wallenius Wilhelmsen Logistics ASA.
In addition, the parties have agreed to merge the ownership of the majority of their vessels and affected assets and liabilities.
The legal agreements are expected to obtain approvals by the end of the year, and the transaction is expected to be complete by the end of Q1, 2017.
