Newly announced teaming makes great liquid player
Capital Product Partners and DSS Holdings merge to make a monstre fleet of 68 units worth $1.5 billion, second only to Torm in the handy size segment
Greek shipping company CPLP Capital Product Partners L.P. and privately held DSS Holdings L.P., based in Connecticut, U.S., have entered an agreement that will see Capital Products spin off its crude and product tanker business into a separate publicly listed company, to be called Diamond S Shipping Inc., which will merge with DSS' businesses and operations in a share-for-share transaction; Craig Stevenson Jr., CEO of DSS, will serve as the CEO of Diamond S Shipping Inc.
CPLPL, controlled by Evangelos Marinakis, will retain control of 1 capesize bulker and 10 post panamax containerships.
According to VesselsValue, the new Diamond S Shipping Inc. fleet will contain 68 vessels, made up of 43 tankers from Diamond S Shipping and 25 from CPLPL, and will own the world's second biggest Handy Tanker fleet, owning a combined 52 vessels, just behind publicly listed Danish shipowner Torm.
The merger will be most significant in the MR2 tanker market; the trading areas of the two fleets is varied, CPLP appears to bring commercial relationships with operators well entrenched in the Latin American market, particularly Brazil, while Diamond S MRs see more activity in the U.S. Gulf, Singapore, and the Far East.
The merger creates an owner with a global footprint in the clean tanker markets, explains senior analyst of VesselsValue Court Smith, noting that we appear to be at the bottom of a market cycle for MR tankers, leaving plenty of upside for the asset value of the underlying vessels.