International Seaways to Add Four VLCCs in $370 Million Bruton Deal

International Seaways agreed Oct. 16 to acquire Bruton Limited in transactions valued at about $370 million, a deal that would add four very large crude carriers (VLCCs) to its fleet of roughly 70 vessels.

The first step covers holders of about 50.5% of Bruton’s outstanding shares. They are to receive 0.05190 International Seaways shares for each Bruton share, with settlement expected on or about Oct. 20. A later merger is intended to address the remaining shares.

In that merger, Bruton holders with more than 10,000 Norwegian depositary receipts (NDRs) are to receive stock at the same exchange ratio. Holders with 10,000 or fewer NDRs are to receive Norwegian-kroner cash equivalent to $6.3044 per Bruton share.

The approximately $370 million valuation accompanies a stock-heavy structure. International Seaways expects to issue about 3.12 million shares, representing about 96% of aggregate consideration, with cash making up the balance. The 50.5% figure describes the portion of Bruton shares covered by the initial exchange; the 96% figure is the expected share portion of consideration across both transactions.

Bruton has one operating VLCC and three vessels under construction in China. Each of the four ships is listed at 300,000 deadweight tons. They are Mount Vision, Mount Horizon, Mount Frontier and Mount Summit. Delivery of the three newbuilds is scheduled from the fourth quarter of 2026 through the fourth quarter of 2027.

International Seaways describes its existing fleet as roughly 70 vessels across crude and product tankers. The proposed addition would expand its crude-carrier fleet with one operating ship and three vessels scheduled for delivery later.

“We're excited about the opportunity to expand and modernize our fleet through this accretive transaction with Bruton,” said Lois K. Zabrocky, International Seaways’ president and CEO.

Bruton shareholders are expected to vote at a special meeting on or about Oct. 30. International Seaways expects the merger to close promptly after the meeting, with completion targeted for early November, subject to shareholder approval and other customary conditions.