Home » Breaking News, Maritime » Maersk obtains final regulatory approval to buy Hamburg Süd

Danish global shipping liner Maersk Line has gotten the final regulatory green light to acquire German carrier Hamburg Süd, announced A.P. Moller-Maersk November 30.

Maersk Line disclosed on December 1, 2016 its intention to purchase Hamburg Süd. The acquisition triggered a regulatory approval process in 23 jurisdictions which was successfully concluded on November 28 this year when the Korea Fair Trade Commission approved the acquisition.

“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,” said Soren Skou, CEO of A.P. Moller-Maersk.

“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,” he continued.

The acquisition is in line with Maersk Line’s growth strategy and represents “a unique opportunity to realize commercial opportunities as well as sizable operational synergies,” said Moller-Maersk.

Combined, the two companies will be able to realize operational synergies of about US$350 million to $400 million annually as from 2019.

Together they will have a total container capacity of 4.15 million TEUs and a 19.3% global fleet capacity share. Some 105 Hamburg Süd vessels will be integrated into the fleet of Maersk Line. The combined fleet will include a total of 773 vessels, both owned and chartered.

Maersk Line will acquire Hamburg Süd for EUR3.7 billion ($4.4 billion) on a cash and debt-free basis, financed through a syndicated loan facility.

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. Soren Toft, chief operating officer of Moller-Maersk, will become board member of the supervisory board of Hamburg Süd, while Dr. Arnt Vespermann will be the new CEO for Hamburg Süd.

“Becoming part of the world’s number one shipping company will create a lot of opportunities. We will strengthen Hamburg Süd in the global playing field and grow our market share together. At the same time, Hamburg Süd will continue serving our customers as a separate brand,” said Vespermann.

“In the future, Maersk Line and Hamburg Süd will offer customers better market coverage, attractive direct services and other benefits via a combined global network. The cost synergies will primarily be derived from integrating and optimizing the networks as well as standardized procurement,” said Moller-Maersk.

Photo: Frank Schulenburg

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