International Seaways, Inc. has agreed to acquire Bruton Ltd. in a transaction valuing the Oslo-traded VLCC company’s equity at approximately $370 million, bringing four modern tankers into the New York-listed owner’s fleet renewal programme.

Announced on 16 October, the proposed combination covers one operating vessel and three newbuildings at China’s New Times Shipbuilding. It brings together ships with existing charter coverage, financing arrangements and deliveries extending into 2027. Approximately 96% of the consideration is expected to be paid in International Seaways shares.

A two-stage transaction, largely paid in shares

International Seaways has reached exchange agreements with investors representing approximately 50.5% of Bruton’s outstanding shares. Participating holders include Drew Holdings, associated with Norwegian shipping investor Tor Olav Trøim, and Koch Inc. They will receive 0.0519 International Seaways shares for each Bruton share, with the initial exchange expected to settle around 20 October. A subsequent merger would bring the remaining shares under Seaways’ ownership, with Bruton surviving as an indirect wholly owned subsidiary.

Seaways expects to issue approximately 3.12 million shares across the transactions. Under the merger arrangements, eligible holders of more than 10,000 Bruton Norwegian Depository Receipts will receive shares, while those holding 10,000 or fewer will receive the Norwegian krone equivalent of $6.3044 per receipt. For investors receiving stock, the transaction would shift their exposure from a concentrated VLCC company to a larger operator serving both crude and product tanker markets.

Bruton’s board has unanimously recommended the transaction. A shareholder meeting is expected around 30 October, with completion targeted for early November, subject to shareholder approval and other customary conditions. Bruton intends to seek delisting from Euronext Growth Oslo following completion.

Four VLCCs with different earnings profiles

All four vessels are 300,000-dwt VLCCs built or under construction at New Times. The LNG dual-fuel Mount Vision entered service in July 2026, while sister vessel Mount Horizon is scheduled for delivery in November. The conventional-fuel Mount Frontier and Mount Summit are due in August and October 2027, respectively.

Mount Vision is employed under a charter with an international trading company comprising an initial three-year term and two one-year options. Its first nine months were fixed at a net $95,000 per day, followed by an index-linked structure incorporating a premium. Mount Horizon has secured a 12-to-15-month charter at a net $105,700 per day, commencing after delivery. At that daily rate, 365 days of hire would amount to approximately $38.6 million.

The financing was arranged before the takeover agreement. Bruton disclosed in July that it had signed sale-and-leaseback documentation with a Chinese leasing house covering 85%–90% of the four vessels’ construction costs, depending on charter coverage. Under those financing assumptions, it estimated cash breakevens of approximately $39,000 per day for the two LNG dual-fuel ships and $35,000 per day for the conventional pair.

The combination offers Seaways several forms of earnings exposure. Mount Horizon provides an initial period of fixed hire, Mount Vision retains a link to future market movements after its fixed-rate period, and the two 2027 deliveries have no charter coverage listed on Bruton’s current fleet page. Their employment will be an important part of the buyer’s commercial decisions after the acquisition。

The takeover follows Bruton’s eight-ship spin-off

The four-vessel acquisition follows a restructuring of Bruton’s original 12-VLCC programme. Bruton retained its first four New Times vessels and transferred eight later-delivery newbuilding contracts to OMC Tankers: four at New Times and four at Yantai CIMC Raffles. The restructuring separated vessels approaching operation from a portfolio more heavily exposed to future delivery dates and asset values.

OMC began trading on Euronext Growth Oslo on 28 August, with its shares distributed to Bruton investors. The eight vessels in OMC remain outside the International Seaways transaction. Bruton’s August distribution announcement identified the transferred CIMC Raffles contracts for delivery in 2028 and the four transferred New Times contracts for delivery in 2029.

Earlier in October, market speculation had linked Seaways to a potential purchase of at least two Bruton newbuildings. The signed agreement extends to the entire remaining company. Shareholders accepting stock would retain tanker exposure through Seaways, while any OMC shares they continue to hold provide a separate interest in the later-delivery portfolio.

Fleet renewal backed by strong earnings

For Seaways, the deal follows disposals of older ships and investment in both vessels and commercial management. During the first quarter of 2026, it sold seven tankers averaging approximately 17 years of age for net proceeds of around $216 million. The disposals comprised five MRs and two VLCCs. The company has also been taking delivery of LR1 newbuildings and acquired sole ownership of tanker pool manager Tankers International on 27 January.

Bruton’s vessels would join Seaways’ diversified fleet of approximately 70 ships, including newbuildings. President and chief executive Lois K. Zabrocky described the acquisition as an opportunity to expand and modernise the fleet through disciplined growth. The transaction would increase modern VLCC capacity within a group that already controls a specialist tanker pool manager, giving Seaways scope to coordinate future vessel employment as ships become available.

Seaways also released preliminary third-quarter figures alongside the acquisition announcement. It expects net income of $340 million–$350 million, including approximately $50 million from the sale of a 2012-built suezmax. Liquidity stood at about $965 million at 30 September, comprising $455 million in cash and short-term investments and $510 million of undrawn revolving credit capacity.

Using shares for most of the acquisition consideration would preserve cash while expanding the fleet. Bruton investors receiving shares would, in turn, participate in the earnings and capital allocation decisions of the enlarged business.

Delivery timing becomes part of the investment case

The commercial attraction of the Bruton portfolio includes access to ships with established construction schedules. One is already earning revenue, a second is approaching delivery with employment secured, and two more are scheduled to arrive in 2027. Buying the company would give Seaways a sequence of additions to its VLCC capacity, supported initially by the first two vessels’ charter arrangements.

The returns will develop across different market periods. Fixed hire provides visibility during the early charter terms, while index-linked earnings and the unchartered 2027 vessels retain exposure to future freight conditions. If the merger closes as planned, Mount Horizon’s delivery in November will be the next operating step, followed by decisions on employment for Mount Frontier and Mount Summit ahead of their 2027 handovers.