China Merchants Energy Shipping (CMES) has agreed to acquire 70% of equity interest in Singapore-based bunker trader China Merchants Energy Trading (CMET) from a sister company China Merchants Hoi Tung.
The tanker and oil shipping giant said the move was aimed at ensuring a sustainable supply of fuel oil and other oil products to its fleet.
The proposed purchase price is $16 million.
China Merchants Energy Trading was established in Singapore in May 2016 and its focus has been trading of marine fuel oil and lubricating oils.
It was established as a 70:30 joint venture between China Merchants Hoi Tung Trading and CMES.
Once launched, the bunker business set out to trade 2 million tonnes of bunker fuel in Singapore, the world’s biggest bunkering port.
With the acquisition of the remaining equity, CMES has taken full control of the business, making CMET its wholly-owned subsidiary.