COPENHAGEN, April 28 (Reuters) – The world’s biggest container shipping company Maersk Line will pay 3.7 billion euros ($4.02 billion) for its acquisition of smaller German rival Hamburg Sud, it said on Friday.
Combined, the two companies will be able to realise annual operational savings of about $350 million to $400 million, Maersk Line said in a statement fleshing out detail on the deal announced in December.
“By keeping Hamburg Sud as a separate and well-run company, we will limit the transaction and integration risks and costs while still extracting the operational synergies,” said Soren Skou, CEO of both Maersk Line and its parent A.P. Moller-Maersk Group.
The boards of Maersk Line and the Oetker Group, owner of Hamburg Sud, on Friday approved the proposed deal, which has been given the green light by the European Commission and the U.S. Department of Justice.
“Maersk paid a significant amount for Hamburg Sud, but considering the wave of consolidation in the industry … you do not get anything cheaply,” Sydbank analyst Morten Imsgard said, adding that the final price was just within his highest estimate.
The proposed acquisition will still need approval from regulatory authorities in countries such as Brazil, China and South Korea, a Maersk spokesman told Reuters, adding that the company expects to secure hese by December or early 2018.
“Integration does not start until we have all approvals,” he said.
The proposed merger will strengthen the Danish company’s presence in global trade, particularly in Latin America, where Hamburg Sud has been long established.
“The job is now to realise those synergy effects, and integrating shipping companies is not without obstacles,” Imsgaard said, referring to past acquisitions that have resulted in a loss of market share in some areas.
Maersk is also in the process of spinning off its energy division, either by seeking alliances or a listing, to focus more sharply on its transport division.
Maersk Line expects the Hamburg Sud transaction to close by the end of the year. ($1 = 0.9200 euros)
(Reporting by Nikolaj Skydsgaard; Editing by David Goodman)
ROME (Reuters) – An Italian judge on Friday cleared three migrant sea rescue charities that had been accused of abetting irregular immigration in complicity with human traffickers, throwing out a case opened...
(Bloomberg) — The closure of one of the East Coast’s busiest ports after the collapse of Baltimore’s Francis Scott Key Bridge has so far not led to broad price increases,...
(Bloomberg) — An Iranian ship that’s been linked to Houthi attacks in the Red Sea is returning home, removing a prominent asset in the area as the Islamic Republic braces...
April 18, 2024
Total Views: 1441
Why Join the gCaptain Club?
Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.
This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.