Saudi Arabia’s Bahri is targeting acquisitions in Asia and the Middle East as it seeks to expand its reach, the chief executive said.
Bahri is the world’s largest owner and operator of very large crude carriers (VLCCs).
“We are looking at multiple acquisitions in the Middle East and Asia worth tens of millions of dollars,” Bahri CEO Abdullah Aldubaikhi told Reuters.
“We want to tap into a new area related to the maritime sector by acquiring companies offering services that are not currently available within Bahri’s portfolio,” he said, without specifying what services would be added.
The company aimed to buy a listed firm in Asia in a deal that would probably be completed in the third quarter of 2019, he said, without elaborating.
Bahri transports Saudi Aramco’s VLCC cargoes on a cost, insurance and freight (CIF) basis, making it the world’s busiest oil shipper.
It transports crude oil, chemicals and dry bulk. It also offers ship management services.
Acquisitions in the pipeline will be financed from the company’s own funds and banking finance, Aldubaikhi said.
“We are expanding and growing, and although the shipping industry is cyclical, I think it has bottomed out in 2018,” Aldubaikhi said.
“The cycle of the shipping industry in 2019 will improve, and the years 2020 and 2021 will be the golden years for this industry.”
Credit: Arab News