UASC and Hapag-Lloyd Merger in the Last Leap
A merger between United Arab Shipping Company (UASC) and German container shipping line Hapag-Lloyd will create a shipping group that is the 5th largest in the world and will give Hapag-Lloyd access to bigger ships on the important Asia to Europe trade route.
The merger deal will create a group that should be valued at around 7-8 billion euros.
The enlarged Hapag-Lloyd will be the world’s fifth-largest carrier, just behind China Cosco Shipping, with a fleet of some 230 ships with a combined capacity of around 1.5 million 20-foot-equivalent units and a 7.4 percent global market share.
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.
UASC shareholders have voted unanimously in favour of a merger with Hapag-Lloyd.The vote followed an announcement on Tuesday that the two sides had agreed merger terms.
UASC, majority-held by the government of Qatar, said in a statement that "...all six of UASC's shareholding states voted unanimously to approve the proposed merger with Hapag-Lloyd AG (Hapag-Lloyd) with a relative valuation of the two businesses at 72 percent for Hapag-Lloyd's shareholders and 28 percent for UASC's shareholders."
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.
