Hapag-Lloyd, UASC ink merger agreement
Hapag-Lloyd AG (Hapag-Lloyd) and United Arab Shipping Company S.A.G. (UASC) have signed a Business Combination Agreement (BCA) to merge both companies, subject to the necessary regulatory and contractual approvals, Hapag-Lloyd said on Monday.
The shipping company said that 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 TEU, an annual transport volume of 10 million TEU and a combined turnover of approximately USD 12 billion.
The combined company will have a global, diversified trade portfolio, with leading product offerings in the major East-West and North-South trades. In addition, it will leverage on UASC´s solid presence in Middle Eastern markets and trades, with a commitment to further strengthening this presence by establishing a fifth Hapag-Lloyd Regional Center in Dubai.
Following regulatory and contractual approvals, the merger is expected to be completed by the end of 2016. Until then, UASC and Hapag-Lloyd will continue to operate as stand-alone companies. Each company will also operate in its own alliance as currently structured until the end of March 2017, after which THE Alliance will commence operations.
Hapag-Lloyd is a leading global liner shipping company. Hapag-Lloyd AG emerged on September 1st, 1970 from the amalgamation of the two shipping companies Hamburg-Amerikanische Packetfahrt-Actien-Gesellschaft (Hapag / Hamburg-American Line) and North German Lloyd (NDL). The company's fleet of around 150 modern ships move annually five million containers. Hapaq-Lloyed employes 6,900 staff working at 300 locations in 114 countries.
Dubai-headquartered United Arab Shipping Company (UASC) was established in Kuwait in July 1976 jointly by six shareholding Arab states of the Persian Gulf (Bahrain, Iraq, Kuwait, Qatar, Saudi Arabia and U.A.E). The UASC fleet of 52 ships operates more than 18 services, connecting the Middle East to Europe, the Mediterranean, Indian Sub-continent, Far East, West Africa and the Americas. UASC network covers over 200 ports and destinations worldwide.
