Maersk Line wins European Commission approval for Hamburg Süd acquisition
Denmark’s Maersk Line has secured approval from the European Commission (EC) for its acquisition of German container shipping line Hamburg Süd.
The deal, first announced in December 2016, could be valued at around $4bn, reported the Wall Street Journal.
The EC approval was based on the condition, including withdrawal of Hamburg Süd from five consortia on trade routes connecting Northern Europe and Central America/Caribbean.
The routes also include Northern Europe and West Coast South America, Northern Europe and Middle East, Mediterranean and West Coast South America and Mediterranean and East Coast South America.
According to EC, the merged entity will not have more competition on these routes after the deal. The effect of the merger will be on seventeen trade routes connecting Europe with the Americas, Asia, the Middle-East, Africa and Australia/New Zealand.
Hamburg Süd has 130 container vessels with a container capacity of 625,000 TEU (twenty-foot equivalent).
With around 5,960 employees in more than 250 offices across the world, the company commercializes its services through Hamburg Süd, Chile-based CCNI and Brazil-based Aliança brands.
EC competition policy in charge commissioner Margrethe Vestager said: "Competitive shipping services are essential for European companies and for the EU's economy as a whole.
“The commitments offered by Maersk Line and HSDG will maintain a healthy level of competition to the benefit of the very many EU companies that depend on these container shipping services."
Maersk Line provides ocean transportation services through 611 container vessels. It has 317 offices in 112 countries.
Image: Hamburg Süd’s Rio de la Plata has a slot capacity of 5,900 TEU. Photo: courtesy of Hamburg Süd Group.