Billionaire John Fredriksen has created a ready-made market leader after merging his two oil tanker firms.
The serial entrepreneur confirmed Frontline Ltd would buy Frontline 2012 by issuing shares worth $1.5billion.
The move comes three years after Fredriksen split the companies apart in a bid to withstand deflated tanker rates and avoid default.
Fredriksen said: “By merging Frontline and Frontline 2012 we will regain Frontline’s position as a leading tanker company.
“The combined company will have a large fleet and a strong balance sheet which puts us in a position to gain further market share through acquisitions and consolidation opportunities.
“With the current strong tanker market and attractive cash break even rates, we believe the combined company will generate significant free cash.
“The intention is to pay out excess cash as dividends at the board’s discretion.”
The newly formed powerhouse will manage a fleet of 90 vessels. A further 22 vessels are expected to be built by 2017.