Hapag-Lloyd and CSAV agree to merge
April 17, 2014
In a move that signals yet more consolidation in the ocean carrier industry, Hapag-Lloyd AG and Compañía Sud Americana de Vapores (CSAV) today signed a binding contract on merging CSAV’s entire container business with Hapag-Lloyd, subject to the necessary approvals.
Following the integration, the new Hapag-Lloyd will rank among the four largest liner shipping companies in the world, with some 200 vessels with total transport capacity of around one million twenty-foot equivalent units (TEUs), an annual transport volume of 7.5 million TEU and a combined turnover of 9 billion Euro.
The company’s head office will remain in Hamburg. In addition, Hapag-Lloyd will have a strong regional office in Chile for its Latin America business.
In return for contributing its container business, CSAV will become a new Hapag-Lloyd core shareholder besides HGV (City of Hamburg) and Kühne Maritime. CSAV will initially hold a 30% stake in the combined entity. The partners have agreed on a capital increase of EUR 370 million once the transaction has been concluded, to which CSAV will contribute EUR 259 million. This will then increase CSAV’s share of Hapag-Lloyd to 34%. A second capital increase of EUR 370 million will be linked to Hapag-Lloyd’s planned stock exchange listing.
As noted in Logistics Management, shippers are still making adjustments related to the P3 Alliance, comprising Maersk, MSC and CMA-CGM. This consortium – recently sanctioned by The Federal Maritime Commission – will control nearly 40% transpacific cargo. Meanwhile, six ocean carriers are forming the G6 alliance.
The relevant corporate bodies of both companies have already approved the merger. The closing of the transaction is subject to the approval of competition authorities. Another condition is that not more than 5% of total CSAV´s minority shareholders exercise their appraisal rights till the 20th April. Until then, dissident CSAV shareholders have the right to withdraw.
The company defined that this appraisal right should be exercised by holders of less than 5% of the company’s total shares in order for the merger with Hapag-Lloyd to be completed.
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