A proposed merger between Hapag-Lloyd and the Chilean Compañía Sud Americana de Vapores (CSAV) is now complete, allowing CSAV´s container business activities to be combined with Hapag-Lloyd, making it the fourth-largest liner shipping company in the world.
The container lines received approval from Brazil without any restrictions in early November 2014.
According to a company press release, annual savings of at least US$300 million are anticipated as a result of network optimisations, improvements to productivity and a reduction in costs.
The merged company will have around 200 vessels with a total capacity of approximately one million TEU, transporting around 7.5 million TEU every year.
The merged liners will set up a fourth regional HQ in Valparaiso, Chile.
With revenue of around US$12 billion, the combined entity will join the elite group of international shipping companies.
Rolf Habben Jansen, CEO of Hapag-Lloyd, said: “This is a big day for both companies. With Hapag-Lloyd’s strength in Asian traffic and on the North Atlantic, combined with CSAV’s strong position in Latin America, we will become the leading [liner].”
Hapag-Lloyd-CSAV Merger Complete. (Source: 7 Sea Vessels)