Diana Shipping to Continue Dry Bulk Consolidation with Offer for Genco
Dania Shipping, which bills itself as a leader in the dry bulk sector, is seeking to continue the market consolidation as it finally made a move to acquire US-based Genco Shipping & Trading. Genco bills itself as the largest U.S.-headquartered dry bulk shipowner, and combined, they would have a fleet of approximately 80 vessels with approximately 9 million dwt.
Diana’s Chief Executive Officer, Semiramis Paliou, highlighted that the offer, which came in the form of a non-binding indicative proposal, is in keeping with “what we consider to be an opportune time of the cycle” for the dry bulk sector. He said the combination would use Diana’s operating platform and increase the scale and flexibility of the fleet while enhancing leverage to the market.
The letter sent to the board of Genco proposes $20.60 per share or a total valuation of approximately $890 million for the stock. Diana has already acquired 14.8 percent of the stock outstanding, making it the largest shareholder in the company, since July 2025. It points out that the offer is “in line with the 10-year-high price for Genco’s shares.” It is a 15 percent premium to the recent share price, a 21 percent premium to July when Diana disclosed it had bought shares of Genco, and a 23 percent premium to the 30 and 890 day trading averages.
Diana highlights that it would provide Genco shareholders with a means to realize immediate value in cash at a premium price. The valuation appears to be in keeping with other recent deals.
The sector has already seen two major consolidations recently. Star Bulk completed its merger with Eagle Bulk in April 2024. This year, CMB.TECH acquired Golden Ocean in a merger completed in August 2025.
Genco issued a brief statement acknowledging its board has “just received” Diana’s non-binding indicative proposal and has not made any decisions. Genco’s Board of Directors said in consultation with its financial and legal advisors, it will carefully review and evaluate the non-binding indicative proposal to determine the course of action.
Two weeks ago, Genco reported its board had amended its shareholder rights plan. They said the purpose was to reduce the likelihood that, through open-market accumulation or other tactics, there could be a change of control in the company. The plan was extended to September 30, 2026.
Both companies have emphasized the opportunities they see emerging in the dry bulk sector. Genco last week announced it was spending $145.5 million to acquire two 2020-built 208,000 dwt scrubber-fitted Newcastlemax vessels. It emphasized its view of the opportunities, especially for Capesize and Newcastlemax sectors. Genco currently has a fleet of 45 vessels, with an average age of 12.5 years and a total capacity of just over 5 million dwt, including the recent acquisitions.
Dania highlights that it currently has approximately 4.1 million dwt with a weighted average age of 12 years for its fleet. It has 36 vessels plus two Kamsarmax methanol dual-fuel vessels on order. Both companies operate with a broad range of commodities, including iron ore, coal, grain, steel products, bauxite, cement, nickel ore, and other commodities. Dania, however, said it would seek to optimize the combined fleet and balance sheet with selective asset divestments if the deal is completed.
While the investment community had speculated that an offer might be in the works, it was still pleased with the news. Shares of Dania were up nearly 6 percent while Genco’s share price rose more than 7 percent, but closed at $19.19, below the $20.60 per share indicated in the letter.
Dania said it hopes to engage with the board of Genco to expeditiously complete the transaction.