Belgian Oil Tanker Firm Euronav Disputes Frontline's Right to Break up Merger
Belgian oil tanker and storage company Euronav said on Wednesday it disputed Frontline's right to end a merger agreement between the two firms and was considering options, including arbitration and legal action.
Oslo-listed oil transporter Frontline said on Monday it was canceling the $4.2 billion merger deal. "Euronav has determined that Frontline's unilateral action in pursuing the termination of the combination agreement has no basis under (its) terms (...), and that Frontline failed to provide a satisfactory reason for its decision," the Antwerp-based group said in a statement.
Euronav, which provides crude oil shipping and storage services, said it was analyzing its options and will take "appropriate action (...), including but not limited to potential litigation and/or arbitration".
"Euronav has complied with its obligations under the combination agreement and has done everything in its power to make this transaction a success," it added.
(Reuters - Reporting by Juliette Portala, Editing Mark Potter)