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As part of its commitment to growing market share organically and by acquisition, the world’s largest container shipping company, Maersk Line is set to acquire the world’s 7th largest container shipping company Hamburg Süd, a north-south trade specialist, subject to final agreement and regulatory approvals.
Maersk Line beat the other front runner CMA CGM in the race for Hamburg Süd, after the Oetker family, which controls 100% of Hamburg Süd, decided to sell the company, possibly as a result of the disappearance of similar mid-sized carriers and increasing consolidation of competitors. Another factor could be the formation of new east-west alliances which could force down further Hamburg Süd’s involvement in this region.
The CEO of Maersk Line and the Maersk Group, Søren Skou says that “our combined network will provide exciting opportunities to develop new products and exploit operational synergies. Hamburg Süd and Maersk Line customers will benefit from more choice and better products”.
Hamburg Süd and Aliança (also owned by Hamburg Süd) will continue as separate brands due to their individual branding successes.
After the acquisition, the container capacity of Maersk Line will increase from around 3.1 million TEU to 3.8 million TEU. Global capacity share is expected to increase from 15.7% to 18.6%. The container fleet will increase from 611 vessels to 741 vessels and the average age of the vessels will drop from 9.2 years to 8.7 years.
The regulatory process is expected to continue until the end of 2017 which will see the acquisition transaction finalised. Until then, Maersk Line and Hamburg Süd will continue to operate business as usual.
If you wish to read more about Maersk Line, please follow the link, or if you have any questions and wish to speak to someone at Clarke Global, please feel free to contact us on 9854 3000 or email email@example.com
Photo by Maersk Line
Established in 1917, Clarke Global Logistics is a reputable Australian Customs Broker and Freight Forwarder; offering a totally integrated trade service both locally and globally.