Stolt-Nielsen Limited (Oslo Børs: SNI) announced Wednesday that it received unconditional Competition Authority approvals of the Company's previously announced plans to acquire the chemical tanker operations of Jo Tankers. The acquisition is expected to be finalized before the end of November.

Competition Authorities Approve Stolt-Nielsen Limited's Acquisition of Jo Tankers

Chemical/Oil Products Tanker Jo Acer - Image courtesy: Hannes van Rijn

The transaction comprises 13 chemical tankers and a 50% share in a joint venture with eight chemical tanker newbuildings, representing an enterprise value of $575 million. The acquired ships would satisfy the tonnage-replacement needs of the Stolt Tankers' fleet for the next several years and add new trade routes that enhance the Company's global service capabilities.

Funding for the transaction has been secured through Stolt-Nielsen Limited's main commercial banks with a combination of bridge financing, secured term loans and corporate funds. The financing of the ships in the joint venture will be off balance sheet. The net addition to SNL's debt from this transaction will be about $465 million. Following the transaction, available liquidity for the Company will be approximately $300 million.

Related news: Stolt-Nielsen Limited Agrees to Acquire the Chemical Tanker Operations of Jo Tankers

Source: Stolt-Nielsen Limited