Hapag-Lloyd merges with Arab steamship
The merger between Hapag-Lloyd and Arab Steamship will be completed by the end of May.
Hapag-Lloyd spokesman said recently that the two parties have signed the M & A agreement, and the official will officially announce the news before the annual shareholder meeting held by Hapag-Lloyd on May 29. Currently, Hapag-Lloyd and Arab Steamship are preparing to integrate within the legal requirements, and a more specific statement is expected in the next two weeks.
7In July 2016, Hapag-Lloyd and Arab Steamship signed a merger agreement. After the completion of the combined project, the new company's container fleet will reach 237 ships with a total capacity of 1.6 million TEU. The new company expects annual container shipments to reach 10 million TEUs and a total turnover of approximately $ 12 billion.
According to the terms of the transaction, South American Steamship, Hamburg and Kühne Maritime will continue to maintain Hapag-Lloyd's controlling shareholder status. Qatar Holding Co., Ltd., the major shareholder of Arab Steamship, and the Kingdom of Saudi Arabia Public Investment will become the new major shareholders of Hapag-Lloyd, holding 14% and 10% of Hapag-Lloyd respectively.
It is understood that the merger of Hapag-Lloyd and Arab Steamship was originally planned to be completed by the end of March, but the final transaction date was postponed because the "final preparation" took much longer than expected.
Hapag-Lloyd has previously stated that the company has obtained all merger permits and authorization approvals and all necessary bank approvals. Arab Steamship also said that it has basically obtained business approval from all banks, emphasizing that the transaction itself is not risky.
Hapag-Lloyd said it expects to receive an annual synergy of $ 435 million from 2019 after the merger.