CMB, Fortescue in joint venture
Compagnie Maritime Belge of Antwerp said its Bocimar International subsidiary will establish a shipping joint venture with one of the world’s largest iron ore companies, Australia’s Fortescue Metals Group.
The Bocimar-Fortescue venture will time charter three Bocimar capsize ships, and Bocimar will also receive shares in Fortescue as a result of the deal and in return for canceling a prior contract concluded a year ago.
In the new deal, Bocimar will deliver two ships “promptly” and a third in the middle of 2010. The 10-year time charters were concluded at market rates and include a profit sharing arrangement, the companies said.
As part of the deal the companies said they have agreed to terminate two earlier contracts that were concluded in February 2008, which involved the use of two vessels, one for a period of 10 years and one for five years.
In consideration of Bocimar agreeing to terminate the contracts and discontinuing arbitration proceedings, FMG has agreed to allot FMG shares to Bocimar for an equivalent value of $22 million based on FMG’s closing price on Dec. 31
