Supply Chain Research

Tanker operator Frontline has renewed its bid for competitor DHT Holdings at terms that are unchanged from its original offer. That was rejected in February, since when DHT signed a deal to buy 11 tankers from BW Group. The deal logic remains the same though. DHT’s fleet has an average age of 8 years (7 including the full BW deal) while Frontline’s is 11 years old. DHT also has a higher proportion of larger tankers in its fleet. Investors do not appear to believe the deal will succeed – DHT’s stock is trading 11% below the level implied by Frontline’s offer.