German shipping line Hapag-Lloyd and Kuwaiti United Arab Shipping Company (UASC) planned merger is one step closer as they seek EU approval, reported Reuters.
The companies submitted concessions on October, 28 aimed at securing EU antitrust approval with the Commission’s competition body, which will pass judgement on the case by November, 23.
The proposed merger would promote the carriers to fifth in terms of carrier capacity, with strong footholds in all of the world’s major shipping routes.
The global shipping industry’s fight against oversupply and stubbornly low container rates has seen a rash of mergers and alliance-building activities since the collapse of Hanjin sent shockwaves through the shipping world.
The merged company will be able to rationalise its fleet and route offerings, improve efficiency and reduce costs.
The news comes as Nippon Yusen, Mitsui O.S.K Lines and Kawasaki Kisen Kaisha (K-Line) announce plans to merge to reduce costs and tackle the high value of the Yen.