Regulatory bodies of China, Korea, Brazil, Chile and South Africa are still to clear Maersk Line’s acquisition of German counterpart Hamburg Süd, Maersk said in an update on the transaction.
Danish shipping company added it has so far obtained approvals from 12 jurisdictions for the USD 4 billion-deal, out of 23 sought.
These include nods from the US Department of Justice in March, and the EU Commission in April, 2017, subject to conditions.
In June, Maersk Line announced sale of Mercosul Line to CMA CGM so as to support the Brazilian regulatory approval process.
Namely, Hamburg Süd already has a subsidiary in Brazil, Alianca Navegacao e Logistica, which is a major cabotage carrier along the Brazilian coastline. Keeping Mercosul would have pushed Maersk’s control of South America East Coast’s cabotage to 80 percent.
“The transaction is progressing as planned,” the company reassured, noting that the final closing of the acquisition is expected during the 4th quarter of this year.
“We are in close dialogue with all relevant authorities providing necessary input for approval.”
As informed, an integration team is working hard to make the process as smooth as possible.
Estimated cost synergies are expected to range between USD 350-400 million by 2019 as earlier announced.
“Based on Maersk’s market research, the German container carrier’s volume and business is holding up quite nicely,“ Maersk’s CEO, Søren Skou said commenting on the transaction progress, adding that this is a good sign for the future business integration.
To remind, Maersk Line said it would acquire Hamburg Süd for EUR 3.7 billion (USD 4 billion) on a cash and debt-free basis, which it plans to fully finance through an already secured syndicated loan facility.
Once the acquisition is completed, Maersk Line and Hamburg Süd will have a total container capacity of around 3.9 million TEU (3.3 million TEU) and an 18.7% (16%) global capacity share. The combined fleet will consist of 743 container vessels.
World Maritime News Staff