TALLINN - The owners of Estonia's two largest oil export terminals 's E.O.S. and Pakterminal 's are set to begin talks on merging operations, according to reports.
Arnout Lugtmeijer, board chairman of E.O.S., declared Dec. 17 that the new company would be set up on the basis of the two companies' existing assets.
"The owners of both E.O.S. and Pakterminal are positive about the plan, but prior to final decisions an in-depth due diligence will be conducted by both sides," Lugtmeijer said, adding that both sides would have to receive permission from the Competition Board in the event a decision on a merger is made.
He said that for now the parties would not offer comments regarding the progress of the talks or the principles based on which the joint venture would be established.
Pakterminal has tanks with an overall capacity of 305,200 cubic meters and is active on three quays at Muuga Port.
The aggregate volume of the storage tanks E.O.S. has is 435,000 cubic meters. It too is active on three quays at Muuga, which is just outside Tallinn.
The majority owner of E.O.S. is Severstaltrans group of Russia, though the company has a number of smaller Estonian investors.
Meanwhile, Royal Vopak, the Netherlands-based group that previously owned half of Pakterminal, announced on Dec. 14 that it acquired the remaining 50 percent of the shares from Trans-Kullo, an Estonian firm.
The Royal Vopak group of the Netherlands is the world's largest independent tank terminal operator specializing in the storage and handling of liquid oil products, chemicals, vegetable oils and liquefied gases.