Hapag-Lloyd and United Arab Shipping Company (UASC) completed merger transaction, said the companies in a joint statement. However, in the near future carriers will continue to work independently. The combination of 118 Hapag-Lloyd services with 45 services included in the UASC network will begin in mid-July and is expected to be completed by the end of the third quarter of this year. The combined volume of transportation of the merged company is projected at a level of over 10 million TEU. With the addition of 58 UASC vessels, the fleet of the new Hapag-Lloyd will be 230 vessels, and the average capacity of one vessel will increase to 6.84 thousand TEU, which is approximately 30% more than the average of the 15 largest carriers.
According to calculations by Hapag-Lloyd, the synergy from the deal will be 435 million USD. A significant part of the savings will be realized already in 2018, and the full effect of the deal will be achieved in 2019.
In addition to saving on synergies, Hapag-Lloyd promised investors that companies will not need significant investment in fleet development in the coming years.
Hapag-Lloyd is a German transportation company comprising a cargo container shipping line.
United Arab Shipping Company (UASC) was established in July 1976, jointly by six shareholding Arab states of the Persian Gulf (Bahrain, Iraq, Kuwait, Qatar, Saudi Arabia and U.A.E). Originally established in Kuwait with its Corporate Headquarters now in Dubai, UASC serves Asia from Port Klang, Northern Europe from Hamburg, the Middle East and Indian Subcontinent from Dubai, the Mediterranean and North Africa from Istanbul, and the Americas from Peachtree Corners, GA, USA.