Marine logistics company China Merchants Energy Shipping (CMES) on Wednesday (1 July) said it has agreed to acquire 70% of equity ownership in Singapore-based bunker trading company China Merchants Energy Trading (CMET) from its sister company China Merchants Hoi Tung for USD 16 million in cash.
The purpose of the acquisition is to simplify operations by reducing the number of related transactions, and to ensure a steady supply of bunker fuel to CMES’s operations.
Following the transaction, CMET will be a wholly owned subsidiary of CMES.
CMET was incorporated in Singapore in 2016 with a registered capital of USD 20 million.
The company’s total assets amount to USD 86.169 million with net assets at USD 21.972 million and a net operating income of USD 348.5 million in 2019.
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Changes include abolishing advance declaration of bunkers as dangerous cargo, reducing pilotage fees on vessels receiving bunkers, and a ‘whitelist’ system for bunker tankers.