Five More Major Regulators Need to Approve Maersk’s Hamburg Süd Deal

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

Share this article

Follow World Maritime News

In Depth>

Events>

<< Sep 2018 >>
MTWTFSS
27 28 29 30 31 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

CWC World LNG & Gas Series: 10th Asia Pacific Summit

Bringing together the key LNG buyers and sellers from across the globe, the Summit provides…

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 >

Defence Safety Conference Supported by The Defence Safety Authority, UK MoD

The Defence Safety Conference is the first of its kind exclusively dedicated to safety across the defence domain…

read more >

Singapore International Bunkering Conference and Exhibition (SIBCON)

The 20th edition of the Singapore International Bunkering Conference and Exhibition (SIBCON) will be about inspiring change…

read more >