Transport Topics Online  
The Newspaper of Trucking and Freight Transportation
Welcome  Guest  Log In         
4/18/2014 9:00:00 AM Write a Letter to the Editor Write a letter to the Editor

Hapag-Lloyd, CSAV Sign Merger Agreement


Patrick T. Fallon/Bloomberg News

Germany-based ocean carrier Hapag-Lloyd said it has signed a binding agreement to merge with Chilean counterpart Cia. Sud Americana de Vapores to form the world’s fourth-largest container shipping company.

Both companies have approved the merger, but the transaction is still subject to approval from competition authorities, Hapag-Lloyd said in an announcement.

The ocean carriers announced in January that they had signed a non-binding memorandum of understanding as they pursued the merger.

The two are combining to compete on more equal terms with industry leader A.P. Moeller-Maersk A/S after an oversupply of vessels coincided with slowing demand to produce a prolonged slump in container shipping. The global financial crisis slowed trade and caused the worst decline in prices for carrying cargo since containerization became global in the 1970s.

Following the merger, the new Hapag-Lloyd will operate about 200 vessels with total capacity of about 1 million twenty-foot equivalent units, an annual transport volume of 7.5 million TEU and a combined turnover of 9 billion euros, the company said.

Its headquarters will remain in Hamburg, Germany, but the company will maintain a regional office in Chile for its business in Latin America.

As part of the agreement, CSAV will become one of Hapag-Lloyd’s “core” shareholders with an initial 30% stake in the combined company, the company said.

By Transport Topics
Bloomberg News contributed to this story.

Follow Transport Topics on Subscribe to get up to the minute news briefs and more from our feeds. RSS Twitter Twitter Facebook Facebook

© 2014, Transport Topics Publishing Group. All rights reserved.


  RELATED ARTICLES

 
LATEST NEWS



 
LATEST JOBS
Follow Us

Newsletters

TTExpress
This free daily newsletter delivers the latest headlines.

TT Executive Suite
This subscriber-only newsletter program tailors your news.

Services

Advertising

TFM

EMU
iTech
© American Trucking Associations, Inc., All Rights Reserved TTNews.com Privacy Statement