Entry to the protected Canadian market will be a key part of the proposed merger between Herbjorn Hansson's Nordic American Offshore (NAO) and domestic operator Horizon Maritime Services (HMS).

Turner Holm, managing director of equity and credit research at Clarksons Platou Securities, said the combination would be a "win-win" for both parties.

It appears to provide a new source of liquidity for NAO, which had $12m in cash as of the end of the second quarter and could have run short without this transaction, he added.