The Paliou family group launches an offer to take over the US rival and create a dry bulk giant
Athens – A new shock in dry bulk consolidation: Diana Shipping has launched a non-binding public offer to acquire Genco Shipping & Trading, proposing $20.60 per share to take over all the shares it does not already own. Diana already holds 14.8% of the capital and values the entire company at approximately $890 million.
The announcement, formalized in a letter to Genco’s board, immediately caused the stock to jump on the Stock Exchange: shares rose to $19.46, approaching the annual high. For Diana, this would be a strategic acquisition destined to expand operational scale and market power in a phase considered favorable in the dry bulk cycle.
The group plans to finance the operation through a new dedicated loan and then proceed with a portfolio rationalization, selectively selling some units to optimize the fleet and balance sheet. The offer has already received the unanimous green light from Diana’s board of directors.
The two combined fleets would reach significant sizes: 36 bulk carriers for 4.1 million dwt in Diana, plus 43 ships in Genco. A merger would therefore lead to one of the world’s largest players in the sector.
However, potential organizational impacts are not lacking. The acquiring company acknowledged that the integration could lead to redundancies in both companies, while assuring that the “best competencies” from both staffs will be selected to build the new structure.
The offer now passes to Genco’s board, which will have to evaluate whether to open negotiations or reject the initiative of its main shareholder.
