Maersk Line completes €3.7B Hamburg Süd acquisition
Just over one year ago Maersk Line announced its intention to acquire Hamburg Süd which triggered a regulatory approval process in 23 jurisdictions – and now this has been successfully concluded with the approval of the acquisition by the Korea Fair Trade Commission.
"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," says Søren 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."
Maersk Line will acquire Hamburg Süd for €3.7 billion (US$4.4 billion) on a cash and debt-free basis and will finance the acquisition through a syndicated loan facility.
The acquisition is in line with Maersk Line's growth strategy, the company said. It represents a unique opportunity to realize commercial opportunities as well as sizable operational synergies, adds Skou.
Combined, the two companies will be able to realize operational synergies in the region of US$350 million to US$400 million annually as from 2019.
Upon transfer of ownership, Dr Ottmar Gast will retire as chairman of the Executive Board of Hamburg Süd to become the new chairman of the Supervisory Board of Hamburg Süd. Søren Toft, chief operating officer, A.P. Moller - Maersk, will become Board Member of the Supervisory Board of Hamburg Süd. The new CEO for Hamburg Süd will be Dr Arnt Vespermann.
"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.
Together, Maersk Line and Hamburg Süd will have a total container capacity of 4.15 million TEU and a 19.3% global fleet capacity share. 105 Hamburg Süd vessels will be integrated into the fleet of Maersk Line and the combined fleet will include a total of 773 vessels (owned and chartered).