[Exclusive] Janggeum Maritime Sells 50% Stake to World’s Largest Shipping Company MSC

Securing Joint Management Rights... Business Diversification

Fair Trade Commission Reviewing Business Combination Notification

Priority in VLCC Price Negotiations

Janggeum Maritime, a domestic ultra large crude carrier (VLCC) operator known for its aggressive vessel acquisitions, is transitioning to a joint management system by selling more than half of its shares to Mediterranean Shipping Company (MSC), the world’s largest shipping company based in Switzerland.

Ultra Large Crude Carrier (VLCC)

According to sources familiar with the matter on March 20, Janggeum Maritime, a core affiliate of Janggeum Shipping, filed a business combination notification with the Korea Fair Trade Commission (KFTC) early last month regarding MSC’s acquisition of a 50% stake in Janggeum Maritime. It is reported that the KFTC is currently reviewing the matter.

A business combination notification is a mandatory legal procedure to obtain regulatory approval, ensuring that mergers and acquisitions do not undermine fair market competition.

Regulatory authorities in Greece, Cyprus, and Norway have also recently made public the business combination notification filed by MSC and Janggeum Maritime for the acquisition of joint control. Both companies must be approved by each country’s fair trade authority after a review of whether their partnership would disrupt market order or create a monopoly.

Regarding the circumstances of the stake sale and transfer of joint management rights, Janggeum Maritime stated, “We are currently verifying the facts.”

Janggeum Maritime is wholly owned by Vice Chairman Jeong Kahyun, the son of Jang Tae Soon, Chairman of Janggeum Shipping. Once the business combination is finalized, SAS LUX, a subsidiary of the MSC Group, will acquire a 50% stake in Janggeum Shipping. Vice Chairman Jeong’s stake will be reduced to 50%, and the two companies will jointly exercise management rights.

MSC, led by Chairman Gianluigi Aponte, is a family-run Swiss shipping giant and the world’s largest shipping company. The company has diversified its business beyond its traditional focus on container ships, expanding into bulk carriers, cruise ships, and PCTCs. This marks MSC’s de facto entry into the VLCC market, which is expected to reshape the industry landscape.

Until now, there had been speculation that MSC was supporting Janggeum Shipping’s aggressive VLCC expansion, but this is the first time the shareholding structure and support mechanisms have been officially disclosed.

With Janggeum Maritime joining forces with MSC, which boasts substantial capital strength, some industry observers believe the company will gain significant bargaining power in the global VLCC market. Janggeum Maritime has recently expanded its influence rapidly by purchasing secondhand vessels and placing newbuild orders in parallel.

Industry experts estimate that Janggeum Maritime’s fleet could eventually account for about 16% of the entire VLCC market. In fact, just this year, Janggeum Maritime has taken delivery of 30 VLCCs and is reportedly operating over 100 VLCCs in total.

As the Strait of Hormuz remains blocked due to the aftermath of the Iran war, the VLCCs owned by Janggeum Maritime are generating significant profits. The company is said to be securing a daily charter rate of about USD 500,000 (approximately 750 million won) per vessel.

This content was produced with the assistance of AI translation services.