Major shipping and terminals operator Stolt-Nielsen has agreed to buy the chemical tanker fleet of fellow Norwegian firm Jo Tankers for $575 million. The purchase price includes 13 chemical tankers and a 50% share in a joint venture with eight newbuildings.  The transaction is subject to regulatory approval but a decision is expected by the end of September 2016.

Funding for the acquisition has been secured through some of Stolt-Nielsen’s main banks with a combination of bridge financing, secured term loans and available funds. Niels Stolt-Nielsen, the company’s CEO, said the deal covers the tonnage replacement needs of its current chemical tanker fleet for the next several years. He added that while the acquisition gives Stolt-Nielsen some operational savings, it also adds new trade routes and expands its presence on key shipping lanes.

The 13 tankers comprise eight all stainless steel ships ranging from 19,000 deadweight (dwt) to 38,000 dwt, and five ships with a combination of stainless steel and coated tanks of around 37,000 dwt. Six of these vessels have been on a time charter to Stolt Tankers for the past five years.

The newbuildings, eight all-stainless steel ships of 33,000 dwt, were ordered from China’s New Times Shipbuilding in November 2013.  The first vessel was delivered early this month with the remainder scheduled for delivery in the second half of 2016 and 2017.

The ships were originally destined to join the Milestone Chemical Tankers pool, a chartering joint venture between Jo Tankers and Japan’s Tokyo Marine. The companies signed a letter of intent in June 2013 to integrate their chemical tanker businesses but the venture lasted less than two years, ceasing operations on Oct. 1 2015.