NEW YORK (Bloomberg) — Bermuda-based Arlington Tankers Ltd. is to be bought out by by General Maritime Corp., the second-biggest US oil tanker owner.

General Maritime's share price rose 8.5 percent yesterday to $26.26 after its said it would buy Arlington in an all-stock transaction, creating a fleet of 31 vessels.

The New York-based company said in a statement that the stock transaction between the companies will give its shareholders 1.34 shares of the combined company.

Holders of shares in Arlington will receive one share. The new company will keep the General Maritime name.

Arlington rose one percent to $19.91 on the New York Stock Exchange.