Denmark-based Maersk Line announced on December 1 that it has reached an agreement to acquire German container shipping line Hamburg Sud from the Oetker group, subject to final agreement and regulatory approvals.
Hamburg Sud is the world’s seventh largest container shipping line, operating mainly on the North-South trades. It manages 130 container vessels with a container capacity of 625,000 TEUs (twenty-foot equivalent units). It has 5,960 employees in more than 250 offices across the world and markets its services through the Hamburg Sud, CCNI (based in Chile) and Aliança (based in Brazil) brands. In 2015, Hamburg Sud had a turnover of US$6.726 billion, of which $6.261 billion stems from its container line activities.
“In the combined network, Hamburg Sud and Maersk Line’s customers will have access to the dedicated end-to-end services provided by Hamburg Sud in the North-South trades as well as the flexibility and reach provided in Maersk Line’s global network,” said Maersk Line in an emailed statement.
Furthermore, the combined network will enable Maersk Line to develop new products with more direct port calls and shorter transit times.
“Our combined network will provide exciting opportunities to develop new products and exploit operational synergies. Hamburg Sud and Maersk Line customers will benefit from more choice and better products,” said Soren Skou, CEO of Maersk Line and the Maersk Group.
The acquisition is subject to a satisfactory due diligence, final agreement, and regulatory approval in China, South Korea, Australia, Brazil, the U.S., and the EU. Maersk Line expects the regulatory process to last until the end of 2017. Until then, Hamburg Sud and Maersk Line will continue business as usual.
Hamburg Sud and Aliança will continue as separate brands and continue to serve customers through their local offices, he added. Maersk Line said it expects the approval of the sales and purchase agreement to take place early in the second quarter of 2017, and to close the transaction end-2017.
With the acquisition, Maersk Line will have a container capacity of around 3.8 million TEUs (as against its current 3.1 million TEUs) and an 18.6% (15.7%) global capacity share. The combined fleet will consist of 741 container vessels with an average age of 8.7 years, younger than the present 9.2 years.
“Today is a new milestone in Maersk Line’s history. I am very pleased that we have reached an agreement with the Oetker Group to acquire Hamburg Sud,” said Skou. He added that with the union, “we can offer our customers the best of two worlds, first of all in the North-South trades.”
“We are proud to join the global market leader Maersk Line. While gaining access to a superior network and systems we will continue the Hamburg Süd brand and business model offering personalized solutions to our shippers and consignees. By joining forces both Maersk and Hamburg Sud will strengthen their product portfolio and cost position to the benefit of their customers,” said Ottmar Gast, chairman of the executive board of the Hamburg Sud group.
“Giving up our engagement in shipping after an 80 year-long ownership in Hamburg Sud was not an easy decision for my family. We are very confident, though, to have chosen the best of all possible partners. Maersk will preserve and grow Hamburg Sud and what the brand and the whole organization and a highly dedicated workforce stand for: reliable and high quality logistical services to our customers,” said August Oetker, chairman of the advisory board of Dr. August Oetker KG, the management holding company of the Oetker group.
On September 22, 2016, Maersk Line announced that it would grow market share organically and through acquisitions.
“The acquisition of Hamburg Sud is in line with our growth strategy and will increase the volumes of both Maersk Line and APM Terminals,” said Skou.
Photo: HamburgerJung
