facebook_pixel
Ocean Carriers

Hapag-Lloyd and UASC Agree on Merger Terms

Hapag-Lloyd and UASC Agree on Merger Terms
Danny Gill

Hapag-Lloyd AG has agreed to a merger deal with United Arab Shipping Company (UASC), creating a group that should be valued at around 7-8 billion euros.

Hapag’s supervisory board approved the deal, which should see them acquiring all of UASC’s shares. Plans for the deal were unveiled in April, and the deal received backing by UASC shareholders earlier this month. However, Hapag-Lloyd’s anchor shareholders and UASC shareholders still need to give final consent for the deal. Hapag-Lloyd did say in a statement though that, “an extraordinary general meeting of UASC will be held in Dubai on June 29,” all but solidify this arrangement.

In a presentation to analysts last month, Hapag-Lloyd placed itself fifth globally in terms of carrier capacity, and UASC in eleventh place. A merger between the two would consolidate the group’s combined 5th place appearance, edging them closer to the nubmer four spot held by COSCO Container Lines.

Besides full mergers companies are also seeking alliances and vessel sharing arrangements to pool trips and save money. Hapag-Lloyd last month unveiled a new alliance due to start in April 2017, which it said UASC would join if the merger plans were successful. Benefits for the merger include Hapag gaining access to bigger ships on the important Asia to Europe trade route. UASC would gain wider access to trans-Atlantic and trans-Pacific loops, where Hapag is strong.

Ocean Carriers
Danny Gill

Danny is currently a Contributing Writer for Airfreight Logistics and Logistics Manager (LM) and is quite the foodie. He’s always on the hunt for new and exciting dishes to sample, and is never one to back down from a spicy challenge. His travels have taken him around the world, and he’s been able to experience many different cultures (and food).

More in Ocean Carriers

Heung-A Shipping Garners High Marks for ‘On-Time Performance’

Heung-A Shipping Garners High Marks for ‘On-Time Performance’

Danny GillSeptember 21, 2017
OOCL Japan

OOCL Japan Named as Sister Enters Guiness World Records

Logistics ManagerSeptember 19, 2017

HMM Signs MoU for Vietnam Port Development

Danny GillSeptember 1, 2017
hyundai HMM

HMM’s Cargo Processing at Busan Port Hits New Record

Danny GillAugust 28, 2017
ZIM

ZIM Announces New President and CEO

Danny GillAugust 16, 2017

South Korean Lines to Sign Consortium MOU

Danny GillAugust 8, 2017
‘K’ Line Sells SAL Heavy Lift to Combi Lift Owner

‘K’ Line Sells SAL Heavy Lift to Combi Lift Owner

Danny GillJuly 27, 2017

CMA-CGM Thailand Appoints New General Manager

Danny GillJuly 12, 2017

COSCO Shipping Offers $6.3 billion for Orient Overseas Ltd

Danny GillJuly 10, 2017