Hapag-Lloyd, CSAV Merger Finalized

MarineLink.com
Wednesday, April 16, 2014
Michael Behrendt, Chairman of the Executive Board of Hapag-Lloyd (left), and Oscar Hasbún, CEO of CSAV, today at Ballin House (Hapag-Lloyd headquarters) in Hamburg after the signing.

Hapag-Lloyd and CSAV binding agreement signed / In return for contributing its container business, CSAV becomes new core shareholder of Hapag-Lloyd / Hapag-Lloyd becomes the world’s fourth-largest liner shipping company

Hapag-Lloyd AG and Compañía Sud Americana de Vapores (CSAV) today signed a binding contract on merging CSAV’s entire container business with Hapag-Lloyd, subject to the necessary approvals. Following the integration, the new Hapag-Lloyd will rank among the four largest liner shipping companies in the world, with some 200 vessels with total transport capacity of around one million TEU, an annual transport volume of 7.5 million TEU and a combined turnover of 9 billion Euro. The company’s head office will remain in Hamburg. In addition, Hapag-Lloyd will have a strong regional office in Chile for its Latin America business.

In return for contributing its container business, CSAV will become a new Hapag-Lloyd core shareholder besides HGV (City of Hamburg) and Kühne Maritime. CSAV will initially hold a 30% stake in the combined entity. The partners have agreed on a capital increase of EUR 370 million once the transaction has been concluded, to which CSAV will contribute EUR 259 million. This will then increase CSAV’s share of Hapag-Lloyd to 34%. A second capital increase of EUR 370 million will be linked to Hapag-Lloyd’s planned stock exchange listing.

“I am delighted that we have succeeded in concluding this partnership through which our two companies are playing an active part in consolidating the liner shipping industry. This day is an important milestone in the history of Hapag-Lloyd,” said Michael Behrendt, Chairman of the Executive Board of Hapag-Lloyd, upon signing the agreement. “The transaction increases the value of the company and therefore also the value of our shareholders’ shares.”

“By joining forces, we are creating a stronger, larger and more global company with significant economies of scale and a considerably improved competitive position,” said Oscar Hasbún, CEO of CSAV. The combination of CSAV’s container shipping business with Hapag-Lloyd will result in annual synergies of at least USD 300 million. Service networks and fleets of both companies complement one another ideally. “The combination with CSAV, Latin America’s leading container shipping line, considerably strengthens Hapag-Lloyd in this growth market and adds a strong position in the North-South traffic to the company’s global network and to its established strength in East-West traffics,” said Oscar Hasbún.

Order books are also complementary. While, at the end of April, Hapag-Lloyd will put into service the last of ten 13,200 TEU vessels ordered for the Far East trade, CSAV still has seven vessels, each of 9,300 TEU, scheduled for delivery in 2014 and 2015. These container ships are specially designed for the South American trade. “This means that we will have a young and cost-efficient fleet. The use of optimum tonnage in the trades is one of the key prerequisites for successful operations in the face of international competition,” Hasbún said.

Both companies pointed out that they also fit in other regards: CSAV, founded in 1872, and Hapag-Lloyd, founded in 1847, share a similar blend of long tradition and entrepreneurial vision for the future.

“By integrating CSAV’s container business, Hapag-Lloyd is able to build on its strengths and is therefore in an excellent position for future growth,” Behrendt said, adding, “This combination will further strengthen our service portfolio and enable us to deliver an even better global service to our clients.”

The relevant corporate bodies of both companies have already approved the merger. The closing of the transaction is subject to the approval of competition authorities. Another condition is that not more than 5% of total CSAV´s minority shareholders exercise their appraisal rights till April 20. Until then, dissident CSAV shareholders have the right to withdraw. The company defined that this appraisal right should be exercised by holders of less than 5% of the company’s total shares in order for the merger with Hapag-Lloyd to be completed.
 

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Pollet to Lead R&D at Coldharbour Marine

Coldharbour Marine Ltd. has appointed Professor Bruno Pollet to head its R&D department.   Bruno Pollet moves to Linby, Nottinghamshire from the University of the Western Cape,

ClassNK Opens R&D Center in Singapore

Classification society ClassNK promoted the activities of its new Global Research and Innovation Center (GRIC) at a press conference held today in Singapore.   Joined

ABS Appoints New Chief Technology Officer

ABS named Howard Fireman as Senior Vice President and Chief Technology Officer (CTO) effective April 20 in a move that strengthens alignment and generates further

Container Ships

Hapag-Lloyd Orders 5 Ships for More Panama Canal Trade

Ship container line Hapag-Lloyd has placed an order for five vessels as it looks to bolster trade in Latin America ahead of next year's planned expansion of the Panama Canal,

APL, MOL, NYK Launch Joint Service

APL, Mitsui O.S.K. Lines (MOL) and Nippon Yusen Kaisha (NYK) have together launched a new joint service between trading hubs in Asia and ports in Mexico, Colombia and Panama.

Main Sea Freight Index at Baltic Exchange Raises

The main sea freight index at Baltic Exchange for ships carrying dry bulk commodities rose further on Friday mostly on higher capesize rates. The index tracks

News

SAAM SMIT Towage Brazil Signs on with Helm

Helm Operations has signed on Brazilian harbor services company SAAM SMIT Towage to its Helm Marine Operations software to manage its billing and dispatch.    SAAM

Siemens Wins Vessel Electrical Installation Contract

Nautilus Minerals Inc. announces that the order for the supply of the entire electrical installation for the production support vessel has been awarded to Siemens International Trading (Shanghai) Ltd.

Delivery Begins for HMS Prince of Wales Bridge

The bridge section of the U.K.’s second Queen Elizabeth Class aircraft carrier has been loaded out of its dock hall in Glasgow ahead of its first sea voyage to Rosyth.

Mergers & Acquisitions

China Shipbuilders may Merge to Stay Afloat

The China's four state-run shipping-related companies  are reportedly in the initial phases of combining units in order to beef up the national shipbuilding industry, says local media.

Caterpillar Acquires ESRG Technologies

Caterpillar Marine has completed the acquisition of ESRG Technologies Group, LLC, a vessel monitoring and data analytics company in the marine industry.   The

Thomson Cruises Names New Ship

Thomson Cruises’ newly acquired Splendour of the Seas will be renamed Thomson Discovery when it joins the company’s fleet in summer 2016 and it will homeport in Palma.

 
 
Maritime Contracts Maritime Security Maritime Standards Offshore Oil Pipelines Salvage Ship Electronics Ship Repair Ship Simulators Sonar
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1845 sec (5 req/sec)