Quotes: MENA   Enter Symbol: NewsLetter: Search: advanced

Saudi- Bahri finalizing merger agreement with Vela  Join our daily free Newsletter

MENAFN - Arab News - 12/06/2014
No. of Ratings : 0
Add to Mixx!



(MENAFN - Arab News) The national shipping company of saudi arabia (bahri) the saudi flag carrier shipping line is finalizing its merger deal with vela's fleet and operations. vela is a subsidiary of the world's largest producer and exporter of oil saudi arabian oil company (aramco).

the two national companies signed a landmark merger agreement in 2012 to make the joint fleet the fourth largest company in the world in terms of ownership of 77 giant ships vlccs industry.

at a press conference bahri ceo saleh al-jasser said after completion of the merger deal estimated to be worth sr12 billion they will have the biggest fleet in the kingdom.

'we will have a long-term accord with sr5 billion. we are going to pay them part of it in the form of shares and the balance in cash (sr3200 million)" he added.

he said the deal includes shifting the whole fleet of vela consisting of 14 vlccs used for floating storage 5 refined petroleum product tankers all crew of vela's carriers employees and part of its business systems so that they can be integrated within bahri's structure.

'this process is the result of a long-term vision and the hard work and commitment of all parties in addition to our leadership and image in the industry" al-jasser said describing it as valuable contribution to the national economy.

he added: "the deal by itself can be a real example of cooperation between national companies in the kingdom. bahri will become the exclusive maritime carrier of crude oil sold by saudi aramco on the basis of delivery to the client by vllcs."

'bahri is one of the biggest shipping companies in the world and biggest fleet-owner (17 vllcs) in the middle east. it occupies a preeminent position among its industry peers at national regional and international levels in all sectors of its business" al-jasser noted.

"we also own the fleet of 24 tankers the fourth in the world in terms of chemical shipments under the national chemical carries (ncc) with saudi basic industries corporation (sabic) partnership" he added.

on general cargo (gc) the official disclosed that sr1500 million has been invested in the company which operates six gc vessels covering north america the middle east the mediterranean and india.

the partnership of this size gives the two national companies a greater ability to compete in the world markets for maritime transport and to achieve further reduction in operating and maintenance expenses. he said that the vela was able to increase the saudi employees on board to 20 percent of their work force.

they will work under a long-term shipping contract according to the agreed terms and conditions. bahri enjoys protection when freight rates fall below the minimum agreed limit. should freight rates increase above a certain agreed limit (the compensation limit) bahri in turn will compensate saudi aramco for the amounts that might have already been paid to bahri when freight rates were below the minimum.


 


Arab News




  MENA News Headlines
 May 26 2015 - Qatar - HH the Emir Attends "Buzzard 4" SeminarQatar News Agency
(MENAFN - QNA) HH the Emir Sheikh Tamim bin Hamad Al-Thani attended Tuesday a part from the senior commanders seminar for the joint military drill "The Buzzard 4", organized by the Qatari Armed ...

 May 26 2015 - Kuwaiti Foreign Minister Meets Yemeni CounterpartQatar News Agency
(MENAFN - QNA) Kuwait's First Deputy Prime Minister and Foreign Minister Sheikh Sabah Khaled Al-Hamad Al-Sabah met Tuesday with his Yemeni counterpart Riyadh Yaseen, whose country is taking part in ...

 May 26 2015 - Bahrain arrests wanted fugitive and confiscates weapons used for terrorist activitiesEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) Security authorities in the Kingdom of Bahrain have announced the arrest of a wanted fugitive and the confiscation of a number of weapons used for terrorist ...

 May 26 2015 - UAE to participate in International Transport Forum 2015 SummitEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) The UAE is to participate in the International Transport Forum 2015 Summit in Leipzig, Germany, from 27th-29th May, 2015.A delegation from the Federal Authority ...

 May 26 2015 - Mohammed bin Rashid attends brainstorming session to discuss future of Smart GovernmentEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister and Ruler of Dubai, has attended a brainstorming session attended by 100 ...

 May 26 2015 - UAQ Crown Prince briefed on NCEMA's programmes and plansEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) H.H. Sheikh Rashid bin Saud bin Rashid Al Mu'alla, Crown Prince of Umm Al Qaiwain, has been briefed on strategic programmes, objectives, specialties and plans of ...

 May 26 2015 - UAE Project Management Conference opens opportunities and challenges in project management fieldEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) The first UAE Project Management Conference and Exhibition was launched yesterday. It was attended by speakers from the UAE, the Gulf Region, and experts from ...

 May 26 2015 - Nahyan affirms importance of innovative thoughts, adoption of UAE VisionEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) Sheikh Nahyan bin Mubarak Al Nahyan, Minister of Culture, Youth and Community Development, emphasised the importance of studying government excellence system and ...

 May 26 2015 - Five UAE sites identified as areas of global biological and ecological importance globallyEmirates News Agency (WAM)
(MENAFN - Emirates News Agency (WAM)) The UAE has identified five sites as areas of global biological and ecological importance during the recently-concluded regional workshop on Ecologically or ...

 May 26 2015 - Yemeni President meets Hadramout Alliance leadersSaudi Press Agency
(MENAFN - Saudi Press Agency) Yemeni President Abed Rabbo Mansour Hadi has met with Hadramout Alliance leaders and discussed with them the current developments at the national level and what Yemen ...

more...


 






Google

Click to Apply

 
 

Middle East North Africa - Financial Network

MENAFN News Market Data Countries Tools Section  
 

Middle East North Africa - Financial Network
Arabic MENAFN

Main News
News By Industry
News By Country

Islamic Finance News
Private Equity News

How-To Guides
Technology Section

Travel Section

Search News

Market Indices
Quotes & Charts

Global Indices
Arab Indices

Commodoties

Oil & Energy

Currencies Cross Rates
Currencies Updates
Currency Converter

USA Stocks
Arab Stocks
 

Algeria 
Bahrain 
Egypt 
Iraq
Jordan 
Kuwait 
Lebanon
Morocco 
Oman 
Palestine
Qatar 
Saudi Arabia 
Syria
Tunisia 
UAE 
Yemen

Weather
Economic Calendar
Financial Glossary


Financial Calculators

RSS Feeds [XML]

Corporate Monitor

Events

Real Estate
Submit Your Property

Arab Research
Buy a Research

Press Releases
Submit your PR

Join Newsletters


 
© 2014 menafn.com All Rights Reserved.  Terms of Service | Privacy Policy | Contact Us | Advertise | About MENAFN | Career Opportunities | Feedback | Help