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UASC shareholders back merger with Hapag-Lloyd

The United Arab Shipping Co (UASC) moved a step closer to merging with Hapag-Lloyd on Wednesday with its shareholders approving the proposed business combination.

Marcus Hand, Editor

June 30, 2016

1 Min Read
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The Middle East based container shipping line said,"...all six of UASC's shareholding states voted unanimously to approve the proposed merger with Hapag-Lloyd AG (Hapag-Lloyd) with a relative valuation of the two businesses at 72% for Hapag-Lloyd's shareholders and 28% for UASC's shareholders."

UASC is majority owned by the state of Qatar which increased its stake in the container line to 51.3% in 2014, while the UAE, Saudi Arabia, Bahrain, Iraq and Kuwait are all shareholders in the line.

"Several legal and administrative tasks need to be completed before the binding agreement can be formally signed," UASC added.

The merger has already been approved by Hapag-Lloyd’s supervisory board earlier this week, but still requires the approval of its major shareholders.

According to analysts Alphaliner a combined Hapag-Lloyd and UASC would the world’s fifth largest container line behind the recently merged Cosco China Shipping with a 1.47m teu capacity fleet. It sees Hapag-Lloyd jumping Evergreen Marine in capacity terms.

It is Hapag-Lloyd’s second merger in recent years with it having merged with the container shipping activities of Chilean line CSAV in December 2014.

The move by Hapag-Lloyd and UASC to combine comes at a time of continued consolidation in the container shipping with CMA CGM passing the 91.05% holding mark in Neptune Orient Lines (NOL) this week guaranteeing it 100% control of the Singapore-headquartered line.

About the Author

Marcus Hand

Editor

Marcus Hand is the editor of Seatrade Maritime News and a dedicated maritime journalist with over two decades of experience covering the shipping industry in Asia.

Marcus is also an experienced industry commentator and has chaired many conferences and round tables. Before joining Seatrade at the beginning of 2010, Marcus worked for the shipping industry journal Lloyd's List for a decade and before that the Singapore Business Times covering shipping and aviation.

In November 2022, Marcus was announced as a member of the Board of Advisors to the Singapore Journal of Maritime Talent and Technology (SJMTT) to help bring together thought leadership around the key areas of talent and technology.

Marcus is the founder of the Seatrade Maritime Podcast that delivers commentary, opinions and conversations on shipping's most important topics.

Conferences & Webinars

Marcus Hand regularly moderates at international maritime events. Below you’ll find a list of selected past conferences and webinars.

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