Maersk Line’s acquisition of Hamburg Süd for nearly USD $4 billion was recently approved by the boards of Maersk Line and the Oetker Group. The acquisition still remains subject to regulatory approvals.
“Today, we have taken a decisive step towards the shared future of Maersk Line and Hamburg Süd. Our due diligence confirmed that Hamburg Süd is a well-run company with strong and highly respected brands. We have confirmed the anticipated synergies and we are convinced that our plan to maximize customer retention is the right path forward. I have no doubt that together we can develop new competitive products to the benefit of our customers and exploit operational synergies. The acquisition is cementing our position as the largest and leading carrier in container shipping, and it will provide great opportunities for the employees of both companies,” says Søren Skou, CEO of Maersk Line and A.P. Moller – Maersk.
Maersk Line says the acquisition is in line with their growth strategy. Combined, the two companies will be able to realize operational synergies in the region of USD $350-$400 million annually over the first couple of years following completion of the transaction. Hamburg Süd will maintain its own structure and is expected to deliver a high customer retention adding to Maersk Line’s growth agenda. Maersk Line has also committed to maintaining the presence of Hamburg Süd in Hamburg, Germany, and has agreed to lease the local head office, initially for a period of five years.
“Hamburg Süd has a strong brand and an attractive customer value proposition. We believe these elements are key for our acquisition to become a success. Therefore, Hamburg Süd will remain under own management and with full brand responsibility,” says Mr. Skou.
“We see the acquisition of Hamburg Süd by Maersk Line as a natural development and we are convinced that Hamburg Süd will thrive under continued own management and maintain not only the services offered to its customers, but also provide its employees a fantastic opportunity to continue shaping the future of the industry as a leading service provider,” says Dr. Ottmar Gast, Chairman of the Hamburg Süd Executive Board.
With the acquisition, Maersk Line and Hamburg Süd will have a total container capacity of around 3.9 million TEUs and an 18.7% global capacity share, with a combined fleet of 743 container vessels. The process of obtaining regulatory approvals is on schedule, and Maersk Line expects to close the transaction by the end of 2017. Until then, Hamburg Süd and Maersk Line will continue business as usual as separate and independent companies.