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Boards approve Maersk's acquisition of Hamburg Süd

LBR Staff Writer Published 01 May 2017

The boards of container shipping firms Maersk Line and Hamburg Süd have approved their merger.

The sale and purchase agreement for the container shipping line has been signed by Hamburg Süd’s owner Oetker Group in March this year, while the deal was first announced in December 2016.

The combined company will have a fleet of 743 container vessels with a total container capacity of about 3.9 million TEU.

It will now include increased number of weekly sailings, faster transit times, as well as more port calls and direct port-to-port calls.

In April, Maersk Line received approval from the European Commission for the acquisition of Hamburg Süd, which has 130 container vessels with a container capacity of 625,000 TEU (twenty-foot equivalent).

The company commercializes its services through Hamburg Süd, Chile-based CCNI and Brazil-based Aliança brands with around 5,960 employees in more than 250 offices across the world.

Subject to regulatory approvals, the deal is expected to complete by the end of this year.

Maersk Line CEO Søren Skou said: “We consider the purchase price of 3.7bn a fair valuation of Hamburg Süd. By keeping Hamburg Süd as a separate and well-run company, we will limit the transaction and integration risks and costs while still extracting the operational synergies.”

Hamburg Süd executive board chairman Dr Ottmar Gast said: “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.”

Image: Hamburg Süd’s Cap San Nicolas in the South China Sea. Photo: courtesy of The Maersk Group.