Saudi Arabia: Hapag-Lloyd, UASC sign merger deal

Hapag-Lloyd and United Arab Shipping Company Monday signed a merger agreement that will create the world’s fifth-largest container shipping line and strengthen the competitiveness of THE Alliance.

The sovereign wealth funds of Qatar and Saudi Arabia, which control UASC, will own 14 percent and 10 percent respectively of the merged carrier.

The merger, which is subject to regulatory and contractual approvals, is expected to be finalized by the end of the year, Hapag-Lloyd said.

The agreement commits some of Hapag-Lloyd’s existing and future shareholders to raise $400 million via a share sale within six months of the closing of the transaction.

The merged carrier will have a fleet of 237 vessels with a total capacity of around 1.6 million 20-foot-equivalent units, an annual transport volume of 10 million TEUs and a combined revenue of approximately $12 billion.

“This strategic merger makes a lot of sense for both carriers as we are able to combine UASC’s emerging global presence and young and highly efficient fleet with Hapag-Lloyd’s broad, diversified market coverage and a strong customer base,” said Rolf Habben Jansen, CEO of Hamburg-based Hapag-Lloyd. “Furthermore, it will give the new Hapag-Lloyd access to ultra-large container vessels.”

“After the successful integration of CSAV, which was concluded mid of 2015, this transaction with UASC is another historic milestone for Hapag-Lloyd.”

Full Content: JOC

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