German container shipping line Hapag-Lloyd AG has agreed a merger deal with United Arab Shipping Company (UASC). The merger talks between the two companies began in April this year.
UASC shareholders met on Wednesday, at an extraordinary general meeting to grant their approval in wihch all six of UASC’s shareholding states voted unanimously to approve the proposed merger with Hapag-Lloyd AG (Hapag-Lloyd) with a relative valuation of the two businesses at 72% for Hapag-Lloyd’s shareholders and 28% for UASC’s shareholders, according to a statement by the company. Company added that several legal and administrative tasks need to be completed before the binding agreement can be formally signed.
Subsequently, both companies will initiate the requests for the necessary regulatory approvals. Until then, both companies will continue to operate as independent, stand-alone companies. Once the regulatory approvals are received, the integration of some activities are expected to begin. However, both companies will still continue to operate in their current alliances until the end of March 2017.
“Hapag-Lloyd and UASC have reached an agreement on the terms and conditions of a business combination agreement (BCA) providing for the contribution of all shares in UASC to Hapag-Lloyd,” the German shipper said in a statement on Tuesday.
