Seatrade Maritime is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Hapag-Lloyd and CSAV complete merger

Hapag-Lloyd and CSAV complete merger
Chile’s Compañía Sud Americana de Vapores (CSAV) and Germany's Hapag-Lloyd have announced that they have completed the merger between the two liners, creating the fourth largest container liner shipping company in the world.

The corresponding contracts for the merger of the two companies were signed back in April in Hamburg. With approval from all the relevant authorities all conditions procedures were fulfilled. The merged company will have around 200 vessels with a total capacity of approximately 1m teu, transporting some 7.5m teu every year and will set up its fourth regional headquarters in Valparaiso, Chile.

With revenue of around US$12bn, “the combined entity joins the elite group of international shipping companies,” Hapag-Lloyd said in a statement.

CSAV’s ceo, Oscar Hasbún, explained that “since 2011, the company started a deep restructuring process, consisting on reducing its container transport capacity, increasing its own fleet and establishing joint operation agreements with other companies, which originated a new, more efficient and modern company. In that same period, we achieved the spin-off of SAAM, which was essential in financing this transformation.  This plan had the shareholders determined support from the beginning and considered the search for a strategic partner to increase competitiveness and profitability”.

CSAV has an initial shareholding of 30% in the merged company, which will increase to 34% after subscribing EUR259m in Hapag-Lloyd’s first capital increase by 31 December 2014. As a result CSAV becomes the major shareholder of the fourth largest operator in the world. By virtue of this association, all three companies 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 will have a 50% participation, while HGV and Kühne Maritime will have 25% each, said a statement from CSAV.

The financial effects of the transaction in the results of CSAV are estimated at a profit of approximately $510m, which include an estimate of CSAV’s participation in Hapag-Lloyd’s equity value and that will depend on HL’s accounting of the container business in its financial statements under IFRS. CSAV will continue providing transportation and logistics services.

Oscar Hasbún said that “from now on, besides protecting the investment in Hapag-Lloyd, the efforts of all those who continue working for CSAV around the world will be focused on developing, promoting and transforming our company in order to provide the best service quality to our customers, as well as being more competitive and efficient.

“Thus, CSAV will strengthen its operation in the car carrier business and continue actively participating in the fruit business through the specialised refrigerated cargo service, as well as in other solutions that add value to our customers. We will also continue developing our operations in liquid bulk transportation and  promoting more and better integral cargo logistic solutions (freight forwarder), through our subsidiary Norgistics, in all the markets where we participate."

“With Hapag-Lloyds 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 the region and thereby be able to offer our global customers an even more attractive network and wider range of products,” said Ralf Habben Jansen, ceo of Hapag-Lloyd.

“Our ability to compete will also be significantly enhanced by closing the gap to the top three of our industry,” noted Jansen. “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 of 2015."