LONDON (Reuters) - Leading British-based ship broker Simpson Spence Young (SSY) has acquired smaller Danish peer Bidsted & Co, the companies said, in the latest shake-up by players looking for growth as the industry heads for recovery.
After a nearly decade-long downturn, caused in part by too many vessels available, segments of the global shipping industry are looking towards better times as ship ordering slows.
The Baltic Exchange’s main sea freight index, which tracks rates for ships carrying dry bulk commodities, approached a four-year high this week, bolstered by buoyant demand for ships carrying coal, iron ore and grain.
SSY, which was founded in 1880, said in a joint statement this week it had agreed undisclosed terms for the acquisition of Bidsted & Co, adding it was an “excellent strategic fit for both parties”.
Bidsted & Co, established in 1940 and focused on dry cargo ship broking, said the move would provide new opportunities “under the umbrella of a major global brokerage”.
Other deals since 2014 have included top ship broker Clarkson’s acquisition of Norwegian brokerage and investment bank RS Platou, and Braemar Shipping Services’ purchase of ACM Shipping to form Braemar ACM Shipbroking.
Reporting by Jonathan Saul; Editing by Susan Fenton