Friday, December 1, 2017

Largest Container Shipping Group in the World Gets Even Bigger

Regulatory Approval Completes Takeover of Rival Firm
Shipping News Feature
DENMARK – GERMANY – Having received the final approval from the Korea Fair Trade Commission at the beginning of the week, Maersk Line has officially completed its €3.7 billion takeover of German competitor, Hamburg Süd. Together, Maersk Line and Hamburg Süd will have a total container capacity of 4.15 million TEU and will secure the Danish freight giant's position as the largest container shipping line with a 19.3% global fleet capacity share, according to industry analysts Alphaliner.

On 1 December 2016, Maersk Line announced its intention to acquire Hamburg Süd, triggering a regulatory approval process in 23 jurisdictions which was successfully concluded on November 28 with the approval of the acquisition by the Korea Fair Trade Commission (KFTC). Søren Skou, CEO of AP Moller - Maersk said:

"With the final approval of the acquisition we have reached an important milestone in our strategy to become an integrated transport and logistics company delivering sustainable growth. These are truly exciting times and we are looking forward to taking the first steps forward as one company.

"Hamburg Süd is an outstanding brand with high quality products. By combining our two businesses we will reinforce the global positions of both companies and enhance our service offers towards customers."

The acquisition is in line with Maersk Line's growth strategy. Combined, the two companies says that they will be able to realise operational synergies in the region of $350-400 million annually as from 2019. Maersk Line will integrate 105 Hamburg Süd vessels into its fleet bringing the total number of vessels up to 773, both owned and chartered. Hamburg Süd and Maersk Line will remain two different and commercially independent companies with specific brand values, offering their respective products and services competitively to the market.

Upon transfer of ownership, Dr Ottmar Gast will retire as Chairman of the Executive Board of Hamburg Süd to become new Chairman of the Supervisory Board of Hamburg Süd. Søren Toft, Chief Operating Officer, AP Moller - Maersk, will become Board Member of the Supervisory Board of Hamburg Süd. New CEO for Hamburg Süd will be Dr Arnt Vespermann.