To create the fourth largest container line in the world
Evergreen, once number one in the world, would be relegated to fifth positio
Germany’s two premier ocean carriers are in merger talks to create the fourth largest container line in the world.
The Executive Boards of Hapag-Lloyd and Hamburg Süd have issued a Media statement that they are investigating if, and under what conditions, a merger of both companies would be of interest.
Talks are thought to be at a very early stage, with due diligence just starting, and no guarantees that agreement will be reached to combine the pair. Neither is it clear yet whether this would be a 50:50 merger, or a takeover.
The two lines had come close to merging in the past but could never agree on terms and who would have ultimate control.
Statements from each line, which are headquartered close to each other in Hamburg, came the day after reports surfaced that German classification society Germanischer Lloyd and Norway’s Det Norske Veritas were discussing a possible merger.
Hapag-Lloyd, which was catapulted into the world’s top five lines in 2005 when it bought CP Ships for around $2bn, is now ranked number seven with a total fleet of almost 760,000 teu, including ships in service and on order. Hamburg Süd is the 12th largest box line with a fleet of 516,000 teu, according to the latest Lloyd’s List Intelligence data.
Combined, they would have a fleet of almost 1.3m teu, pushing the new entity to fourth place behind Maersk Line, Mediterranean Shipping Co and CMA CGM, whose fleet stands at 1.4m teu when including the order book. Evergreen, once number one in the world, would be relegated to fifth position. The logistics entrepreneur, who is the second-largest shareholder in Hapag-Lloyd, said earlier this year that “only a merger can bring the ship owner into the lead group” alongside Maersk, MSC and CMA CGM.
But the two have very different ownership structures, with Hamburg Sud privately-owned by the Oetker family, and Hapag-Lloyd effectively owned by the city, with local interests clubbing together a few years back to avoid the line falling into foreign ownership.
Hapag-Lloyd was the target of a takeover approach by NOL in 2008, but the Singapore line subsequently withdrew its offer as market conditions deteriorated. Prior to that, however, the threat of Hapag-Lloyd being bought by a foreign line had caused an outcry in Germany,
Although shareholder Tui wants to reduce its holding, a deal with Hamburg Sud is not a direct exit route. Instead, a larger group would be better placed for an initial public offering which Hapag-Lloyd Executive Board Chairman Michael Behrendt is keen to achieve.
Both are well-regarded operators, but Hapag-Lloyd is larger and a member of the G6 alliance of Asian and European lines.
Evergreen, once number one in the world, would be relegated to fifth positio
Germany’s two premier ocean carriers are in merger talks to create the fourth largest container line in the world.The Executive Boards of Hapag-Lloyd and Hamburg Süd have issued a Media statement that they are investigating if, and under what conditions, a merger of both companies would be of interest.
Talks are thought to be at a very early stage, with due diligence just starting, and no guarantees that agreement will be reached to combine the pair. Neither is it clear yet whether this would be a 50:50 merger, or a takeover.
The two lines had come close to merging in the past but could never agree on terms and who would have ultimate control.
Statements from each line, which are headquartered close to each other in Hamburg, came the day after reports surfaced that German classification society Germanischer Lloyd and Norway’s Det Norske Veritas were discussing a possible merger.
Hapag-Lloyd, which was catapulted into the world’s top five lines in 2005 when it bought CP Ships for around $2bn, is now ranked number seven with a total fleet of almost 760,000 teu, including ships in service and on order. Hamburg Süd is the 12th largest box line with a fleet of 516,000 teu, according to the latest Lloyd’s List Intelligence data.
Combined, they would have a fleet of almost 1.3m teu, pushing the new entity to fourth place behind Maersk Line, Mediterranean Shipping Co and CMA CGM, whose fleet stands at 1.4m teu when including the order book. Evergreen, once number one in the world, would be relegated to fifth position. The logistics entrepreneur, who is the second-largest shareholder in Hapag-Lloyd, said earlier this year that “only a merger can bring the ship owner into the lead group” alongside Maersk, MSC and CMA CGM.
But the two have very different ownership structures, with Hamburg Sud privately-owned by the Oetker family, and Hapag-Lloyd effectively owned by the city, with local interests clubbing together a few years back to avoid the line falling into foreign ownership.Hapag-Lloyd was the target of a takeover approach by NOL in 2008, but the Singapore line subsequently withdrew its offer as market conditions deteriorated. Prior to that, however, the threat of Hapag-Lloyd being bought by a foreign line had caused an outcry in Germany,
Although shareholder Tui wants to reduce its holding, a deal with Hamburg Sud is not a direct exit route. Instead, a larger group would be better placed for an initial public offering which Hapag-Lloyd Executive Board Chairman Michael Behrendt is keen to achieve.
Both are well-regarded operators, but Hapag-Lloyd is larger and a member of the G6 alliance of Asian and European lines.
No comments:
Post a Comment