Hapag-Lloyd and UASC merger likely complete by August

Hapag-Lloyd and UASC merger likely complete by August

The Wall Street Journal has reported the proposed merger between Hapag-Lloyd and United Arab Shipping Co (UASC) is likely to be concluded by August.

Shareholders of UASC meet in 10 days’ time to discuss the proposed merger with the Hamburg line.

The deal would see Hapag-Lloyd, which took over CSAV 18 months ago, take 72% of the new line with UASC holding the rest. The merged company would be worth $9bn and would be the world’s fifth largest containerline.

The merged entity would form part of the recently announced THE Alliance, a grouping which also includes NYK, MOL, K Line, Hanjin Shipping and Yang Ming.

UASC is owned by the governments of Qatar, Saudi Arabia, Kuwait and the United Arab Emirates, while CSAV owns 31.4% of Hapag-Lloyd, with the German city of Hamburg and Kuehne Maritime, a, holding around 20% each.

Sam Chambers

Starting out with the Informa Group in 2000 in Hong Kong, Sam Chambers became editor of Maritime Asia magazine as well as East Asia Editor for the world’s oldest newspaper, Lloyd’s List. In 2005 he pursued a freelance career and wrote for a variety of titles including taking on the role of Asia Editor at Seatrade magazine and China correspondent for Supply Chain Asia. His work has also appeared in The Economist, The New York Times, The Sunday Times and The International Herald Tribune.

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1 Comment

  1. Kaushik Guha Roy
    May 24, 2016 at 10:04 am

    What I thought 10 – 12 years back is now in full swing . The small / mid size vessel operator shall be eaten up by the big players . Time a will come when the competition shall be between 4 -5 Carriers only ….