Maersk announced that the sale and purchase agreement for the company’s acquisition of Hamburg Süd was approved by the boards of Maersk Line and the Oetker Group. The acquisition still remains subject to regulatory approvals and it is estimated at EUR 3.7 billion on a cash and debt-free basis.
On 1 December 2016, Maersk Line announced its intention to acquire Hamburg Süd, the German container shipping line, and on 14 March 2017, Maersk Line announced the signing of a sale and purchase agreement with the Oetker Group, owner of Hamburg Süd.
With the acquisition, Maersk Line and Hamburg Süd will own 743 container vessels, with a total container capacity of around 3.9 million TEU (3.3 million TEU) and an 18.7% (16.0%) global capacity share.
According to Maersk’s statement, the two companies, combined, will be able to realise operational synergies in the region of USD 350-400 million annually over the first couple of years following completion of the transaction. The combined network is expected to include increased number of weekly sailings, faster transit times, more port calls, more direct port-to-port calls and less need for transhipment.
“We consider the purchase price of EUR 3.7 billion a fair valuation of Hamburg Süd. By keeping Hamburg Süd as a separate and well-run company, we will limit the transaction and integration risks and costs while still extracting the operational synergies” said Søren Skou, CEO of Maersk Line and A.P. Moller – Maersk, and added: “Hamburg Süd will remain under own management and with full brand responsibility”.
The process of obtaining regulatory approvals is on schedule. On 23 March 2017, the US Department of Justice approved the proposed acquisition and on 10 April 2017, the EU Commission approved the proposed acquisition, subject to conditions.
Maersk Line expects to close the transaction by the end of 2017. Until then, Hamburg Süd and Maersk Line will continue business as usual as separate and independent companies.
