Germany-based Hapag-Lloyd and United Arab Shipping Co. (UASC) signed on Monday a merger agreement to create the world’s fifth-largest liner shipping entity, Hapag-Lloyd said in a statement.
Saudi Arabia’s Public Investment Fund (PIF) and Qatar Holding LLC, the main shareholders of UASC, will own 10 percent and 14 percent, respectively, of the merged entity.
The deal, which is subject to regulatory and contractual approvals, is expected to be completed by the end of this year.
Hapag-Lloyd and UASC will continue to operate as independent companies until the merger is finalized, the statement added. The alliance will likely start operations in April 2017.
“With this merger, we are embarking on an exciting new phase of UASC´s growth,” said Jorn Hinge, president and chief executive of UASC.
The fleet of the merged company will operate 237 ships – including UASC´s six recently received 18,800 TEU (twenty-foot equivalent unit) ships. It will have a total capacity of around 1.6 million TEU, an annual transport volume of 10 million TEUs, and a combined revenue of approximately $12 billion.
Dubai-based UASC will contribute six recently delivered 18,000-TEU vessels and 11 new 15,000-TEU ships to the merged fleet, which will have an average size of 6,600 TEUs, and an average age of 6.6 years.
The new company will remain a registered and stock-listed company in Germany. It will be also be a member of The Transport High Efficiency Alliance, which includes NYK Line, MOL, “K” Line, Hanjin Shipping, Hapag-Lloyd, and Yang Ming Line.
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