News:Middle East & Africa

Hapag-Lloyd takeover of UASC completion postponed, deal not in doubt

Hapag-Lloyd has postponed the completion date of its takeover of Dubai-headquartered United Arab Shipping Company (UASC).

The German container shipping company said closing the deal, which is thought to be worth between EUR7-8bn ($7.5-8.6bn), is taking longer than expected but is not at risk.

The deal is expected to complete on 31 May 31, two months after the previously agreed date of 31 March.

In a statement, Hapag-Lloyd said: “All merger clearances and authority approvals as well as all necessary banking approvals from Hapag-Lloyd AG’s side and substantially all banking approvals from UASC’s side have been obtained and the merger parties are arranging the final documentation for a closing of the business combination.”

Hapag-Lloyd said despite the delayed closing date that its participation in a new shipping alliance in which shipping lines share vessels and pool runs to various destinations would start as planned on April 1.

Known as THE Alliance, the tie-up brings together Hapag-Lloyd, NYK, Mitsui OSK Lines, K Line, and Yang Ming.

Posted 19 March 2017

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James Henderson

Middle East Correspondent

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