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Saudi Arabia's oil giant Aramco announced plans to merge its company Vela with Saudi firm Bahri to form the world's fourth largest oil transporter. Under a non-binding memorandum of understanding, Bahri would pay Vela $1.3 billion, made up of $832,000 in cash and the rest in stocks.
"By creating a new global leader in shipping, Saudi Aramco hopes to build a strong company that can leverage its capabilities in the shipping sector and would meet its growing business portfolio," it said.
"Bahri would become the fourth-largest owner of VLCCs [very large crude carriers] globally, creating a platform for continued economic growth and human capital development in the kingdom," Aramco said.
"It would also expand the ability of Saudi Aramco and the kingdom to meet future maritime transport needs for its expanding downstream businesses."
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