By Mark Edward Nero
Hyundai Merchant Marine and Mediterranean Shipping Co. have finalized the purchase of Hanjin Shipping’s interests in Total Terminals International, which operates facilities at the seaports in Long Beach and Seattle.
Hanjin put the interests up for grabs following its filing for bankruptcy last summer. Hanjin, previously the world’s seventh largest container carrier, filed for receivership last August after losing the support of financial institutions that had been providing it credit.
Under the acquisition, MSC subsidiary Terminal Investment Ltd. assumes 80 percent, and Hyundai Merchant Marine receives the other 20 percent, of all of Hanjin’s equity and shareholder loans in both TTI and an associated terminal equipment leasing company, Hanjin TEC.
“Our focus throughout the acquisition consultation has been, and will continue to be, rebuilding the business and servicing the needs of our affiliated shipping line MSC, its 2M partner Maersk, and our new joint venture partner HMM,” TIL President Alistair Baillie said in a statement.
With its purchase of Hanjin’s 54 percent stake in TTI, MSC became the sole owner of the terminal operator.
Hyundai and MSC jointly submitted an offer for the share in TTI in late 2016, however, Hyundai later decided to pull out of the joint bid in favor of a minority stake in the operator.