Norwegian rolling cargo shipping specialist Wilh. Wilhelmsen Holding (WWH) and Norwegian/Swedish shipping company Wallenius have signed an agreement leading to a new ownership structure for their jointly owned investments.

Under the deal, the companies will combine ownership in Wallenius Wilhelmsen Logistics, EUKOR Car Carriers and American Roll on Roll off Carrier.

Wilh. Wilhelmsen ASA will issue shares to Wallenius Lines in exchange for their shares of the currently joint investments. At the completion of the merger, Wilhelmsen and Wallenius will hold 37.8% and 48% of the new entity to be named Wallenius Wilhelmsen Logistics ASA. Minority shareholders in WWASA will hold the remaining 14.2% of the shares.

The parties have also agreed that Wallenius will reduce its shareholding subsequent to the merger, whereby both parties eventually will have an equal shareholding in the new entity.

“Our goal is to create a world-leading and sustainable shipping and logistics platform,” Thomas Wilhelmsen, group CEO for the entire Wilhelmsen group, said.

Wilhelmsen added that “the proposed merger will facilitate an improved growth path for the land-based logistics offer, where we expect investments and development of new products and services.”

Closing of the merger is expected in early April, subject to relevant regulatory and shareholders’ approvals.

The parties said that the agreement shall remain in force until December 31, 2021.

Further information is expected to be available in mid-January 2017 when Wilh. Wilhelmsen ASA is scheduled to publish an information memorandum with respect to the merger.

The merger was announced in early September when Wilh. Wilhelmsen Holding and Wallenius signed a letter of intent to establish a new ownership structure.