Hapag-Lloyd and CSAV finalize shipping merger
Annual sales of US$12 billion are expected following the tie up, with around 200 vessels likely to be sailing the world's oceans.
Germany-based Hapag-Lloyd and Chile-based CSAV (Compañía Sud Americana de Vapores) signed the corresponding contracts for the merger in April, with approval from all the relevant global authorities.
In addition to the impressive sales estimates, annual savings of at least US$300 million are also anticipated as a result of 'network optimizations', improvements to productivity and reductions in costs.
The merged company's vessels will have a collective capacity of approximately one million twenty-foot equivalent units (TEU), transporting some 7.5 million TEU every year.
Hapag-Lloyd will also set up its fourth regional headquarters in the Chilean port city of Valparaiso.
The Germany company's CEO Rolf Habben Jansen said this was 'an exciting day for both companies'.
"With Hapag-Lloyd's strength in Asian traffic and on the North Atlantic, combined with CSAV's strong position in Latin America, we will become the leading shipping company in this region – and thereby be able to offer our global customers an even more attractive network and wider range of products," Jansen said in a release.
"Our ability to compete will also be significantly enhanced by closing the gap to the top three of our industry.
"Our immediate priorities now are to continue to offer excellent service to all of our customers and to honor all the commitments both companies made, whilst we plan the upcoming integration. There will be no major changes to the way we work until the transition to the Hapag-Lloyd systems towards the end of the first quarter 2015".
CSAV CEO Oscar Hasbún said he was very proud the two long-established companies would now become 'one of the most prominent players' in the global container shipping industry.
"We fit together perfectly thanks to our complementary network, our customer structure, and our excellent professionalism and reputation," he said.
In addition to Hapag-Lloyd integrating CSAV's container business, there are also plans to raise capital of €370 million (US$460 million) by Dec. 31 2014, in which CSAV will take a share of €259 million (US$322 million) and Kühne Maritime €111 million (US$138 million).
Hapag-Lloyd's ownership structure will also change, with CSAV becoming the company's largest shareholder with 34% after the cash capital increase. The other shareholders are HGV (23.2%), Kühne Maritime (20.8%), TUI (13.9%), along with Signal Iduna, HSH Nordbank, M.M. Warburg, and Hanse Merkur.
CSAV, HGV and Kühne Maritime have agreed to pool 51% of the shares in Hapag-Lloyd in order to discuss and make key decisions together in the future. Of this pool structure, CSAV owns a 50% participation, while HGV and Kühne Maritime will own 25% each.
The main processes of integrating CSAV's container business into Hapag-Lloyd are expected to be completed by the end of the second quarter of 2015.