By Mark Edward Nero
German transport company Hapag-Lloyd AG and Dubai-based container shipper United Arab Shipping Co. said April 21 that they’re currently discussing forms of cooperation including a “potential combination of their mutual container shipping operations,” or in other words, a merger.
“In case of a business combination, the parties are basing their discussions on a relative valuation of the two businesses at 72 percent Hapag-Lloyd and 28 percent UASC,” Hapag-Lloyd said in a statement.
However, the agreement is subject to a “mutually satisfactory” completion of the negotiations, as well as due diligence by both parties, according to Hapag-Lloyd.
“To date, the discussions conducted between the two carriers have not resulted in any binding agreement and no assurance can be given that these discussions will lead to a definitive agreement,” the statement says.
Hapag-Lloyd, which has a fleet of 177 modern container ships, has 366 sites in 118 countries and offers a total transport capacity of almost one million TEUs, as well as a container capacity of 1.6 million TEUs.
The company is also a founding member of the G6 Alliance, one of the largest shipping alliances in the world.
United Arab Shipping, which was established in 1976, is jointly owned by six shareholding Arab states of the Persian Gulf – Bahrain, Iraq, Kuwait, Qatar, Saudi Arabia and the United Arab Emirates.
It has more than 185 offices around the world and is the largest container shipping line in the Middle East region and adjacent markets, covering over 240 ports and destinations globally.