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.