Hapag-Lloyd Hamburg Süd merger talks cease

Differences of opinion on the management and ownership structure of the merged companies are cited as the reason for the break in negotiations. Hamburg Süd is a smaller operation than Hapag-Lloyd but with a stronger financial position, Hapag-Lloyd has a higher level of debt and a larger fleet. Just last week Hapag-Lloyd posted an annual loss of $164.8m.

The announcement came in a press release from Hapag-Lloyd owners Alber Ballin and TUI-Hapag, halting negotiations over the merger which was announced in December 2012.

Future strategies on finance and growth of the combined lines, including a possible IPO, were publicly discussed by significant investor in Alber Ballin, Klaus-Michael Kuhne, in an interview with Die Welt. Kuhne insisted that Hapag-Lloyd will seek a public listing on the stock exchange with or without Hamburg Süd and that both lines are too small to face Maersk Line, MSC and CMA CGM alone.

Hamburg Süd clarified its position in a press release later this afternoon, stating that whilst it does not wish to comment publicly on the points under discussion in the talks, it supports the flotation of the merged company if certain conditions are met.

The advisory and executive boards went on to comment that "Hamburg Süd remain firmly of the view that the merger of Hapag-Lloyd and Hamburg Süd would be of enormous benefit for both companies as well as for Hamburg as a shipping location."

Add Seatrade Maritime News to your Google News feed.