New York-listed tanker owner International Seaways has agreed to acquire Oslo-listed Bruton Limited in a series of transactions valuing the company at approximately $370 million, adding four very large crude carriers to its fleet. The agreement, announced Friday, October 16, combines Bruton’s VLCC portfolio with Seaways’ diversified fleet of roughly 70 crude and product tankers.
The transaction will proceed in two steps: an initial share exchange with Bruton shareholders holding about 50.5% of outstanding stock, expected to settle around October 20, followed by a cash-and-stock merger to acquire the remaining shares, subject to a Bruton shareholder vote scheduled for around October 30.
Deal Structure and Fleet Details
Bruton is a pure-play VLCC vehicle backed by investor Tor Olav Trøim, holding four very large crude carriers either in operation or under construction. The transaction values Bruton at approximately US$370M and covers two 2026-built VLCCs, Mount Vision and Mount Horizon, as well as Mount Frontier and Mount Summit, both scheduled for delivery next year, with all four vessels ordered at China’s New Times Shipbuilding.
Under the mechanics of the deal, International Seaways entered into exchange agreements with Bruton shareholders representing approximately 50.5% of the company’s outstanding common shares, who will receive 0.0519 International Seaways shares for each Bruton share held. The company expects to issue approximately 3.12 million shares across the transactions, representing about 96% of the aggregate consideration, with the remainder paid in cash, while Bruton’s board has unanimously approved the merger agreements.
Tanker Earnings Surge
The acquisition was announced alongside preliminary third-quarter results showing International Seaways reported average blended spot earnings of approximately $68,000 per day during the third quarter, more than double the $29,000 per day recorded a year earlier. According to Bruton’s own fleet information, Mount Vision is earning $95,000 per day under its existing charter, while Mount Horizon has secured a charter at $105,700 per day, underscoring the elevated rate environment the acquired vessels are entering.
International Seaways president and chief executive Lois K. Zabrocky said the company was “excited about the opportunity to expand and modernize our fleet through this accretive transaction with Bruton,” adding that it reflects the company’s disciplined approach to growth. She said the combined entity would remain positioned to pursue growth while generating returns for shareholders following completion of the deal.
Fleet Modernization Trend
The deal follows a broader pattern in the VLCC segment, where owners have pursued acquisitions of existing tonnage and newbuilding slots rather than placing fresh orders, as congested Chinese and South Korean shipyards push delivery windows further out. Industry observers have noted that even older VLCCs now command valuations rivaling newbuild costs amid tight orderbooks and sustained freight strength.
For International Seaways, the Bruton transaction lowers the average age of its crude fleet while adding modern, efficient tonnage without placing new orders directly with a shipyard. The company’s enlarged crude and product fleet of roughly 70 vessels positions it to capture continued strength in long-haul crude trades as global oil flows adjust to shifting trade routes and sanctions-driven realignments.
Why it matters
The deal illustrates how elevated tanker earnings are driving consolidation among VLCC owners seeking fleet growth without joining lengthening newbuilding queues at Asian shipyards. With spot rates for International Seaways more than doubling year over year, the transaction signals continued investor appetite for crude tanker capacity amid tight vessel supply and volatile Middle East shipping conditions. The structure, heavily weighted toward stock consideration, also reflects how listed tanker companies are using equity to fund expansion while preserving cash amid a strong freight cycle.
Source: gCaptain
