Stamford-based Eagle Bulk Shipping Inc. has agreed to merge with global shipping company Star Bulk Carriers Corp., based in Athens, Greece, to create one of the world’s largest commodity carriers.
The merger, valued at $2.1 billion, is expected to close during the first half of 2024.
Star Bulk and Eagle Bulk operate ships that carry dry bulk cargo overseas. Demand for their services has risen, as China begins to restock commodities such as iron ore and coal from exporters in Australia, Brazil and Indonesia, according to the Wall Street Journal.
This has pushed daily freight rates of the largest dry bulkers to more than $40,000 from $10,000 in the beginning of the year, the WSJ reported.
Star Bulk and Eagle shareholders will own 71% and 29% of the combined entity, respectively, the companies said in an announcement.
“Bringing together Star Bulk and Eagle will create a global leader in dry bulk shipping with a large, diversified, scrubber fitted fleet,” said Petros Pappas, CEO of Star Bulk. “Together, we will benefit from greater scale with 169 owned vessels, generating meaningful synergies and building an even stronger financial profile.”
The combined company will be led by the current management team of Star Bulk and will be joined by certain senior executives from Eagle, according to the announcement.
When the deal closes, Pappas will serve as CEO of the combined company, and Spyros Capralos, current chairman of Star Bulk, will serve as chairman of the combined company’s board.
The combined company will be named Star Bulk Carriers Corp. and will be headquartered in Athens, with offices in Stamford along with Singapore, Denmark and Cyprus.
