Two Navios Shipping Companies Merge to Create America’s Biggest Shipping Firm by Vessel Count
Two of Navios’ NYSE-listed shipowning companies are set to merge, and their combination will create the largest shipping firm by vessel count on an American stock exchange.
Navios Maritime Partners and Navios Maritime Acquisition Corp. announced last week that they intend to merge. Shareholders of Navios Acquisition, a tanker owner, will receive about 0.13 shares of Navios Maritime Partners for each of their outstanding shares. A round of Navios Acquisition debt that was set to mature in November will be resolved in a cash payout from Navios Partners, with support from newly arranged loan financing for the combined entity. The transaction will help resolve Navios Acquisition’s heavy burden of debt.
“We are announcing a transformative transaction. The combined entity will be the largest U.S. publicly-listed shipping company in terms of vessel count, with 15 vessel types diversified across three segments, servicing more than 10 end markets,” said Angeliki Frangou. “About one-third of our fleet will be in each of the dry bulk, containership and tanker segment. We believe that this combination will result in a stronger, more resilient entity, mitigating sector specific cyclicality.”
