Hapag-Lloyd Confirms USAC Merger Talks
Hapag-Lloyd is in talks to merge with rival United Arab Shipping Company (UASC), the German container shipping group said on Thursday, confirming an earlier report.
"The parties are basing their discussions on a relative valuation of the two businesses at 72 percent (Hapag-Lloyd) and 28 percent (UASC)," Hapag said in statement.
"To date, the discussions conducted between the two carriers have not resulted in any binding agreement and no assurance can be given that these discussions will lead to a definitive agreement", it added.
Earlier, German monthly Manager Magazin reported that talks were advanced and that the two companies could form the world's fourth-largest container shipping company, prompting a 12 percent rise in Hapag's share price.
The shipping industry is in a long-term downturn where greater entities can achieve better economies of scale.
Reporting by Arno Schuetze