Hapag-Lloyd AG and Compañía Sud Americana de Vapores (CSAV) have today agreed to merge CSAV’s entire container business with the German shipper.
The binding agreement will see the reshuffled Hapag Lloyd jump the rankings to become the world’s fourth largest carrier behind Maersk Line, CMA CGM and MSC.
Adding the Chilean carrier’s vessels to its existing fleet, Hapag Lloyd will now boast as many as 200 vessels, a combined transport capacity of around one million TEU and a turnover pushing €9 billion, whilst gaining a strong presence in Latin America through CSAV’s long-established regional office in Chile. The company’s headquarters will remain in the German city of Hamburg.
As part of today’s agreement in return for contributing its box business, CSAV will be granted a 30 percent stake in Hapag Lloyd alongside HGV (City of Hamburg) and Kühne Maritime. The respective parties have agreed on a capital increase of €370 million upon the conclusion of the transaction, which will see CSAV contribute as much as €259 million to increase its share in the German shipper to 34 percent. A second capital increase of €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,” declared Michael Behrendt, chairman of the executive board of Hapag-Lloyd, upon signing the agreement.
“This day is an important milestone in the history of Hapag-Lloyd.”
“The transaction increases the value of the company and therefore also the value of our shareholders’ shares.”
Oscar Hasbún, CEO of CSAV, added that by joining forces the pair will create a stronger, larger and more global company with significant economies of scale and a considerably improved competitive position.”
“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 will also be complementary, Hapag Lloyd said in a statement. At the end of the month, the carrier is scheduled to put the last of ten 13,200 TEU vessels into service on the Far East trade, while CSAV still has a total seven 9,300 TEU ships slated for delivery later this year and in 2015. These vessels will operate on the South American trade.
The closing of the transaction will be finalized upon the approval of the relevant competition authorities.