Eagle Bulk Shipping of the United States and Star Bulk Carriers of Greece have amalgamated to establish the largest dry bulk shipping firm listed in the United States. The boards of directors of both firms have authorised the all-stock merger, which results in a pro forma market capitalization of $2.1 billion.
When 
the acquisition is completed in the first half of 2024, the merged fleet will consist of 169 owned vessels. Stockholders of Star Bulk will be entitled to 2.6211 shares of common stock for every share of Eagle common stock, for a total estimated value of $52.60 per share, representing a 17% premium over Eagle’s closing value of $44.85 per share on December 8th. Following the merger, Star Bulk and Eagle shareholders will own around 71% and 29% of the amalgamated company, respectively.
The amalgamated firm will be known as Star Bulk Carriers, and its CEO will be Petros Pappas, who is now the CEO of Star Bulk, with operations in Singapore, Stamford, Copenhagen, Connecticut, and Limassol, as well as the headquarters in Athens.
Spyros Capralos, the present chairman of Star Bulk, will serve as the merged board chairman. Following the closing, the newly formed firm is expected to have around $420 million in liquidity, with an emphasis on achieving annual cost and revenue synergies of $50 million during the first twelve to eighteen months.
The companies hope to gain scale benefits such as decreased general and administrative costs and commercial operations integration.