Fresh German-Chilean shipping line acquisition deal in the works -

Fresh German-Chilean shipping line acquisition deal in the works

Hot on the heels of a merger deal that could give Chile-based Compañía Sudamericana de Vapores (CSAV) a 30% stake in German logistics company Hapag-Lloyd, fresh corporate dealings are underway with competing shipping liners from the two countries. Rio de la Plata

Hamburg Süd's South American arm has announced it signed a preliminary agreement with Compañía Chilena de Navegación Interoceánica S.A. (CCNI) to acquire the container liner activities of the Valparaiso-based company, along with 'related agency functions'.

The Chilean company explained the sum proposed was US$160 million, and for the operation to go ahead CCNI must realize financial gains in the order of US$85 million.

The offer also includes the 12-year subleasing of four ships with 9,000 twenty-foot equivalent unit (TEU) capacity that are currently under construnction in a Philippine shipyard, along with the full transfer of CCNI staff contracts.

A release said the transaction would be subject to due diligence, the execution of a sale and purchase agreement, and approval by the competent authorities.

Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft KG (HSDG) expects to complete the purchase by the end of the year.

"HSDG intends to strengthen its liner network to and from South America by integrating the CCNI liner services," the release said.

"Merging the dedicated and experienced workforce of CCNI and HSDG will help to create an even stronger organization that will provide a first class service to the customers of both companies.

"Following the transaction CCNI will continue its non-liner shipping activities including the car carrier and ship-owning business."