Boards of Maersk Line and Hamburg Sud approved acquisition deal for 4 billion USD

Hambug Sud shipMaersk Line acquisition of Hamburg Sud was approved by the Board of Directors of both companies and the completion is subject of approval of regulators. The price approved by the both companies is 3.7 billion EUR (or about 4.0 billion USD) and the deal is schedule to complete until the end of the year. The deal will be financed by Maersk Line by bank loan. According to calculations in the both companies, the synergistic effect of the deal is estimated at 350-400 million USD for a couple of years after its completion. The synergy will be achieved mainly through integration and optimization of networks, standardization of purchases, as well as expansion of the portfolio and increase in the volume of terminals of APM Terminals.

The deal is still subject to agreement with the concerned regulators. On March 23, the merger was approved by the US Department of Justice, while on April 10 the EC approved it with a number of conditions.

Hamburg Sud is the seventh largest container carrier in the world and the leader in the north-south transportation segment. As a result of the merger, the combined fleet of of the both companies will comprise 743 vessels with a total capacity of 3.9 million TEU (compared to 3.3 million TEU from Maersk Line today). The market share of the merged company will increase to 18.7% (compared to 16%).