DUBAI, United Arab Emirates (AP) — Saudi Arabia's state-owned oil giant Saudi Aramco says it has agreed to merge its maritime division with the country's state-owned shipping line to create the world's fourth-largest tanker operation.
Aramco CEO Khaled Al-Faleh says the $1.3 billion merger will transfer the fleet of the company's sea-going subsidiary, Vela International, to the state shipping company Bahri.
The deal announced Monday is subject to shareholder approval as well as the green light by regulatory authorities.
Under the terms of deal, Vela will transfer its entire operations and fleet that includes 14 large crude carriers. For an initial 10-year period, Bahri will be the exclusive provider of crude shipping services for Aramco.