South Korean Shipping company Hyundai Merchant Marine (HMM) has announced its intentions to buy a 20% stake in Total Terminals International (TTI).
HMM will pay USD $15.6 million for their stake in TTI, making them the second largest holder behind MSC, who have been confirmed to take over Hanjin’s 54% stake. TTI operate terminals at the Port of Long Beach and the Port of Seattle.
In December (2016) HMM had planned a combined bid with MSC for the 54% Hanjin stake, but this later fell through after HMM chose to pull out.
In the minority stake deal HMM will not be obligated to take over Hanjin’s TTI debts. In a release by HMM, a spokesperson said “TTI’s handling volumes will dramatically increase as we strengthen Asia-U.S. services through strategic cooperation with 2M”. The statement also claimed that the acquisition would “help reduce terminal handling costs and secure stable profitability”.
