Golden Ocean Group Limited (GOGL) saw its stock price surge 6.42% in after-hours trading on Wednesday, following the announcement of a merger agreement with CMB.TECH. The deal, which aims to create a major diversified maritime group, has been unanimously approved by the boards of both companies.

Under the terms of the agreement, Golden Ocean will merge with CMB.TECH Bermuda Ltd., a subsidiary of CMB.TECH, with the latter emerging as the surviving entity. Golden Ocean shareholders will receive 0.95 newly issued CMB.TECH ordinary shares for each of their outstanding common shares. Upon completion of the merger, CMB.TECH shareholders will own approximately 70% of the combined company, while Golden Ocean shareholders will hold the remaining 30%.

The merger is set to create a formidable player in the maritime industry, with a combined fleet of approximately 250 vessels. Additionally, CMB.TECH plans to pursue a secondary listing on Euronext Oslo Børs post-merger, potentially increasing the liquidity and visibility of the stock. While the deal still requires regulatory approvals and Golden Ocean shareholder consent, investors appear optimistic about the potential synergies and growth opportunities this merger could bring to both companies in the competitive shipping sector.