Mitsui O.S.K. Lines, Ltd. (MOL) has announced that its wholly-owned group company, MOL Chemical Tankers Pte. Ltd. (MOLCT), will acquire Fairfield Chemical Carriers, as the company expects growth in the chemical tanker business.
MOL said MOLCT had reached an agreement in principle with Fairfield-Maxwell Ltd. by which MOLCT would acquire the business of Fairfield Chemical Carriers (FCC).
[Source: MOL Group]
The acquisition has been approved by the boards of directors of both companies and MOL, subject to the usual terms and conditions as set forth in the share purchase agreement.
MOL said in acquiring the FCC's business, MOLCT would obtain 100% of the shares in Fairfield Chemical Carriers Pte. Ltd. in an all-cash transaction for about US$ 400 million, subject to change depending on the price adjustment under the share purchase agreement.
Growth in chemical tanker business
The execution of the transfer of shares under the share purchase agreement is subject to customary regulatory approval by the relevant authorities.
"The MOL Group positions the chemical tanker business as a business domain where it expects growth, as set out in its group management plan "BLUE ACTION 2035," and intends to proactively invest in this field," MOL said in the announcement.
"This acquisition is part of that plan."
MOL added that through this acquisition, MOLCT would strengthen its highly specialized business utilizing multi-segregated chemical tankers equipped with stainless steel tanks, one of the company's key strengths, by consolidating its fleet of 85 vessels with 36 operated by FCC.
At the same time, MOLCT would further expand its service and access to areas where it expects further growth in which FCC has a strong presence.
In addition, with the Fairfield brand and its human capital, which FCC has built up over the years, the MOLCT Group would promote its Safety, Digital Transformation (DX), Human Capital, and Environmental Strategies and accelerate its response to sustainability issues.
"The MOL Group will continue to enhance its organizational capabilities and aims to be a strong and resilient corporate group that provides new value to all stakeholders and grows on a global scale," the statement said.