Maersk Line to Buy German Rival Hamburg Süd
Global shipping giant A/S Maersk Line of Denmark on Dec. 1 announced plans to grow its business by buying German rival Hamburg Süd, the world's seventh largest container shipper.
Maersk Line, part of the conglomerate AP Moller-Maersk, did not disclose a value for the deal, which still requires regulatory approval from authorities in the European Union, China, Japan, South Korea, Brazil and the United States.
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The company said it expected to announce more details early in the second quarter of 2017 and aimed to close the deal at the end of that year.
"The acquisition of Hamburg Süd is in line with our growth strategy and will increase the volumes of both Maersk Line and APM Terminals," said Soren Skou, CEO of Maersk Line and the Moller-Maersk group.
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Hamburg Süd and its Brazilian subsidiary Alianca were to continue as separate brands, the statement said.
Hamburg Süd operates 130 container vessels and has close to 6,000 employees. If the deal is approved, Maersk Line's share of the global market would grow from 15.7% to 18.6%, while also rejuvenating its fleet.
