Hapag-Lloyd and UASC Mergers

Container carriers Hapag-Lloyd AG and United Arab Shipping Company S.A.G. (UASC) have signed a Business Combination Agreement (BCA) to merge both companies, subject to the necessary regulatory and contractual approvals.

News ID: 67601

Date: 20 July 2016 - 08:02

According to MANA.,Following regulatory and contractual approvals expected to be obtained by the end of 2016, the new Hapag-Lloyd will own and operate 237 vessels with a total transport capacity of around 1.6 million TEU. The new company is expected to handle an annual transport volume of 10 million TEU and have a combined turnover of approximately USD 12 billion.
The combined company will remain a registered and stock listed company in Germany with its head office in Hamburg.
“After the successful integration of CSAV which was concluded mid of 2015 this transaction with UASC is another historic milestone for Hapag-Lloyd. The merger reinforces our position as a top 5 and one of the largest truly global carriers in liner shipping.”
“With this merger, we are embarking on an exciting new phase of UASC´s growth,” said Jorn Hinge, President and CEO of UASC.
The company will be the part of the new “THE Alliance” – consisting of Hanjin, Hapag-Lloyd, K-Line, Mitsui O.S.K Lines, Nippon Yusen Kaisha and Yang Ming. THE Alliance is scheduled to begin operation in April 2017 and will cover all East-West trade lanes including Asia-Middle East/Arabian Gulf and Red Sea.
UASC and Hapag-Lloyd will continue to operate as stand-alone companies until the merger is approved. Each company will also operate in its own alliance as currently structured until the end of March 2017, after which THE Alliance will commence operations