Hafnia Ltd. (HAFN) stock is soaring 5.02% in intraday trading, following the company's announcement of a preliminary agreement to acquire a significant stake in fellow tanker operator TORM plc (TRMD). The surge in Hafnia's share price reflects investor optimism about the strategic move, which could potentially strengthen the company's position in the tanker industry.

According to the announcement, Hafnia has reached an agreement with Oaktree Capital Management, L.P. and its affiliates, the controlling shareholder of TORM, to acquire approximately 14.1 million class A shares in TORM. The deal is valued at $22 per share, totaling around $311 million. This acquisition would represent about 14.45% of TORM's issued share capital, giving Hafnia a substantial ownership stake in the well-regarded tanker company.

While Hafnia stated that it believes consolidation is generally positive for the tanker industry, the company has not made any decisions regarding its long-term position as a TORM shareholder. The transaction is still subject to the execution of a definitive agreement and other customary conditions. The market has responded positively to this news, with TORM shares also seeing an uptick of more than 1% in recent trading. Additionally, analysts remain bullish on Hafnia, with BTIG maintaining a Buy rating and a price target of $10.00 for the company's stock.