Maersk and CMA CGM Eyeing Hamburg Süd

Image Courtesy: Hamburg Süd

Container shipping giants Maersk and CMA CGM are the two frontrunners in the race for Hamburg Süd, but the high asking price could prove to be the main stumbling block, according to container shipping analyst Alphaliner.

The potential sale of Hamburg Süd is attracting interest among top-tier ocean carriers, Alphaliner said.

The largest obstacle to a potential deal is a price tag of close to USD 5 billion the Oetker family, which controls 100% of Hamburg Süd, reportedly put on the German north-south trade specialist.

The Oetker family had previously been unable to reach a consensus on whether to sell the company or not, Alphaliner said. However, the increasingly difficult north-south trade conditions and the disappearance of similar mid-sized carriers may have prompted the family members to reconsider their positions, with a decision expected to be made shortly, according to Alphaliner.

The decision will have to be made quickly, as Hamburg Süd is at risk of being left behind by the wave of consolidation among competing carriers, as well as by the formation of new east-west alliances in which the German carrier will not participate, Alphaliner said.

Hamburg Süd’s current east-west trade lot arrangements with UASC, COSCO and APL are all expected to be terminated by April 2017, and the carrier may be forced to downscale its involvement in the east-west trade, should its owners choose to stay in the shipping business.

Hamburg Süd’s shipping operations, including its liner and tramp shipping operations, accounted for 49.5% of the Oetker Group’s total turnover in 2015.

The privately-held Oetker Group does not publicly report full financial results, apart from overall turnover numbers.

Total turnover from liner shipping operations, after adjustment for foreign exchange losses, has been declining since 2013, when it hit a peak of USD 6.4 billion, according to Alphaliner.

Turnover dropped to USD 6.32 billion in 2014 and USD 6.26 billion in 2015, despite the inclusion of Compañía Chilena de Navegación Interoceánica’s (CCNI)liner shipping activities since March 2015.

The total value of ships and container assets on the Oetker Group’s books is listed at USD 2.19 billion as at the end of 2015.

The carrier has very little debt on its books and any potential buyer will have to fork out cash to acquire Hamburg Süd, as there would be little appetite for a non-cash/share offer for the highly independent Oetker Group, Alphaliner said.

Share this article

Follow World Maritime News

In Depth>

Events>

<< May 2018 >>
MTWTFSS
30 1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30 31 1 2 3

The 27th World Gas Conference

The 27th World Gas Conference is the leading global industry event and is the definitive gathering of influential leaders, buyers and sellers, policy-makers and experts from around the world.

You will hear critical business insights and lively debates on the most topical issues facing the global gas industry today and in the future.

From 25-29 June 2018, Washington DC is expected to host 12,000 attendees, 500 speakers and 350 exhibitors representing, more than 600 companies from 100 countries.

Presented by the IGU, this is the largest and most high-profile gas event that is conducted by the industry for the industry.

Read More

read more >

Europort 2018

From 15-17 May 2018, the 12th edition of Europort Romania willl take place in the IDU Hall in Constanta…

read more >

BlueWeek2018

The BlueWeek2018 will be held on 28-29-30 May in Rotterdam, under the auspices of the Blue Forum…

read more >

Posidonia 2018

Posidonia, the international shipping exhibition, has long been established as one of the major calendar events…

read more >