Shipping lines Hapag-Lloyd and Compañía Sud Americana de Vapores (CSAV) have signed a binding contract to integrate the Chilean line’s container business, creating what will be the fourth largest container line in the world.
Following the merger the Hamburg-based shipper will have a fleet of some 200 vessels with total transport capacity of around 1m teu and annual transport volume of 7.5m teu. While the head office will remain in Germany, the company will gain a regional office in Chile for its Latin American operations.
CSAV will become a new core shareholder of Hapag-Lloyd, along with HGV (City of Hamburg) and Kühne Maritime, with an initial 30% stake in the combined entity. The companies have agreed on a capital increase of €370m once the transaction is completed, of which CSAV will contribute €259m, taking its share up to 34%. A second capital increase of €370m will be linked to Hapag-Lloyd’s planned stock exchange listing.
“I am delighted that we have succeeded in concluding this partnership,” said Michael Behrendt, chairman of the Hapag-Lloyd’s executive board. “This day is an important milestone in the history of the company.”
Oscar Hasbún, CEO of CSAV, added: “By joining forces, we are creating a stronger, larger and more global company with significant economies of scale and a considerably improved competitive position.”
At the end of April, the German carrier puts into service the last of ten 13,200 teu vessels ordered for the Far East trade. Meanwhile CSAV still has seven vessels, each 9,300 teu, scheduled for delivery over this year and next.
The relevant corporate bodies have already approved the merger and the closing of the transaction is now subject to the approval of competition authorities.