According to "Trade Wind" (TradeWinds) reported that the Norwegian ship brokerage company Fearnleys is in the acquisition of the United Kingdom-based Ocean Shipbrokers in negotiations, the company hopes to expand its brokerage business globally.
According to a number of sources in the global shipbroker community, Fearnleys is about to take over Ocean Shipbrokers, the two sides have reached an agreement in principle, Ocean Shipbrokers director Ed Romer-Lee has left. It is reported that some shareholders of the company are cautious about whether the deal can be reached. Although the two sides have been communicating in the past few months, there are still some different opinions on the future development path.
Astrup Fearnley Group is reportedly looking to invest "substantially" in its shipbroking activities while considering other acquisitions in the United States. There are rumors in the market that Fearnleys has recently targeted Charles R Weber, and another well-known American brokerage company is also considered to be the company's acquisition target.
in the face of market rumors, Marius Hermansen, CEO and Fearnleys CEO of Astrup Fearnley Group, made it clear that he does not comment on market speech and declined to discuss potential expansion moves. Dan Gundy, one of the majority shareholders of Ocean Shipbrokers, also declined to comment on the rumors.
It is reported that Fearnleys currently in London has a relatively small team, with 12 brokers, involved in liquefied natural gas (LNG), liquefied petroleum gas (LPG), tanker and ship trading and other fields.
In addition to acquiring companies, Fearnleys has recently been pursuing a strategy of "poaching" from competitors to strengthen its presence in South America and the Middle East. It is reported that the company has previously recruited three brokers specializing in the Cape of Good Hope bulk carrier business from the London-based ship brokerage company Braemar, and established a new office in Sao Paulo, Brazil. In addition, the company for its Dubai business solicited a Braemar broker.
Ocean Shipbrokers, founded in 2006, has a presence in tanker brokerage and was once considered close to commodities trader Glencore (Glencore). Later, the company expanded into the S & P and gas sectors, with more than 30 employees and offices in London, Geneva, Dubai and China. The latest earnings data show that as of the end of June 2022, the company's net assets reached 1.6 million billion pounds.
competitors speak highly of Ocean Shipbrokers, which has reached maturity as an independent brokerage and can make the next major expansion. If Fearnleys can successfully acquire Ocean Shipbrokers, this will take the former's expansion plan to a new level. This also confirms the industry's statement that "in today's society, it is becoming more and more difficult to survive as an independent economic business".
In addition to the acquisition rumors of the two companies, it has also been reported that Clarkson is discussing the possibility of acquiring Maersk subsidiary Maersk Broker, which has conducted due diligence on rival brokerage firms. But so far, the two sides have not yet commented. In addition, at the beginning of this year, Ifchor, which focuses on dry bulk transportation, and the long-established London shipbroking company Galbraith completed their merger plan to form a new global company with 300 employees and 21 offices around the world.
Source: Shipping Industry