Hapag-Lloyd and CSAV agree on their merger

Merger of Hapag-Lloyd and Chilean CSAV forms the world’s fourth largest container shipping company

Hapag-Lloyd and the Chilean container shipping company (CSAV) agreed on the merger of their container business. The binding contract was signed on April 16 by top representatives of both enterprises. CSAV’s entire container business will be fully integrated into Hapag-Lloyd, subject to the necessary approvals. CSAV, founded in 1872, and Hapag-Lloyd, founded in 1847, share a similar blend of long tradition and entrepreneurial vision for the future.

This merger will form the fourth-largest container shipping company in the world, with a strong position in almost all trades. Following the integration, the new Hapag-Lloyd will have a combined annual turnover of more than EUR 9 billion. With some 200 vessels with total transport capacity of around one million TEU, an annual transport volume of 7.5 million TEU will be shipped. The company’s head office will remain in Hamburg; the regional office for its Latin America business will be in Chile.

In return for contributing its container business, CSAV will become a new Hapag-Lloyd core shareholder besides HGV (City of Hamburg) and Kühne Maritime. CSAV will initially hold a 30% stake in the combined entity. The partners have agreed on a capital increase of EUR 370 million once the transaction has been concluded, to which CSAV will contribute EUR 259 million. This will then increase CSAV’s share of Hapag-Lloyd to 34%. A second capital increase of EUR 370 million will be linked to Hapag-Lloyd’s planned stock exchange listing.

“I am delighted that we have succeeded in concluding this partnership through which our two companies are playing an active part in consolidating the liner shipping industry. This day is an important milestone in the history of Hapag-Lloyd,” said Michael Behrendt, Chairman of the Executive Board of Hapag-Lloyd, upon signing the agreement. The transaction was increasing the value of the company and therefore also the value of the shareholders’ shares.

“By joining forces, we are creating a stronger, larger and more global company with significant economies of scale and a considerably improved competitive position,” said Oscar Hasbún, CEO of CSAV. The combination of CSAV’s container shipping business with Hapag-Lloyd will result in annual synergies of at least USD 300 million. Service networks and fleets of both companies complement one another ideally. The combination with CSAV, Latin America’s leading container shipping line, considerably strengthens Hapag-Lloyd in this growth market and adds a strong position in the North-South traffic to the company’s global network and to its established strength in East-West traffics.

Order books are also complementary: While, at the end of April, Hapag-Lloyd will put into service the last of ten 13,200 TEU vessels ordered for the Far East trade, CSAV still has seven vessels, each of 9,300 TEU, scheduled for delivery in 2014 and 2015. These container ships are specially designed for the South American trade. “This means that we will have a young and cost-efficient fleet. The use of optimum tonnage in the trades is one of the key prerequisites for successful operations in the face of international competition,” said Oscar Hasbún.

www.hapag-lloyd.com/en/home.html‎

Quelle: LogEastics
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