Doha – Mubasher: Hapag-Lloyd and United Arab Shipping Company (UASC) have signed a Business Combination Agreement (BCA) to merge both companies, and create the world's fifth largest container firm, according to a joint statement.
In addition to the BCA between the two companies, the controlling shareholders, namely CSAV Germany Container Holding GmbH, HGV, Beteiligungsmanagement and Kühne Maritime GmbH on the side of Hapag-Lloyd, and Qatar Holding LLC on behalf of the State of Qatar as well as Saudi Arabia’s Public Investment Fund (PIF) on behalf of UASC, have assumed certain commitments with regard to the merger and the future equity funding of the company in a separate agreement.
Controlling shareholders in the two merged companies have committed to backstop a cash capital increase amounting to $400 million to be carried out through a rights issue within 6 months after the closing of the transaction, the statement revealed.
Following the integration, the new Hapag-Lloyd will rank among the five largest container shipping lines in the world, with 237 vessels and a total transport capacity of around 1.6 million twenty-foot equivalent units (TEUs), an annual transport volume of 10 million TEUs and a combined turnover of approximately $12 billion.
The combined company will remain a registered and stock listed company in Germany with its head office in Hamburg.
“After the successful integration of CSAV which was concluded mid of 2015 this transaction with UASC is another historic milestone for Hapag-Lloyd. The merger reinforces our position as a top 5 and one of the largest truly global carriers in liner shipping.” said Rolf Habben Jansen, CEO of Hapag-Lloyd
“With this merger, we are embarking on an exciting new phase of UASC´s growth,” said Jorn Hinge, president and CEO of UASC, noting that “the combined company will provide customers with valuable expertise and very efficient service offerings in all major trade lanes and markets around the world.”.
