Hapag-Lloyd and CSAV Merge Together Creating the 4th Largest Container Operator
Hapag-Lloyd and CSAV merge together to form the fourth largest container operator in the world after Maersk, MSC and CMA CGM. A binding agreement has been signed between the two on 16th April. According to the joint press release, CSAV is to bring its fleet and operations to the Hamburg based company, in return for a 30% stake. CSAV will thus become a major shareholder, alongside the City of Hamburg and Kühne Maritime.
The partners have also agreed to a Euro 370million (USD 512million) capital increase. The Latin American operator is to subscribe for 70% (Euro 259million) of the total amount, bringing its stake to 34%. Based on these numbers, the post merger / pre capital increase operation is valued at 3.35bn euro. A second 370m euro capital increase is understood to be planned through a stock-exchange listing. The two companies expect to generate synergies of 230m euro per annum through the merger.
The joint fleet of Hapag-Lloyd and CSAV will have a cumulated capacity of about one million TEU with some 200 units. The fleet includes some recently built, fuel-efficient vessels such as Hapag-Lloyd's 13,200 TEU vessel ULSAN EXPRESS that is the tenth of the 10 unit strong series of neo-panamax vessels built at Hyundai Heavy Industries. CSAV also has 9,300 TEU vessels to be delivered in 2014 and 2015.
The merger certainly serves Hapag-Lloyd’s need and appetite for growth, as the consecutive attempts of merging Hapag-Lloyd with Hamburg sister Hamburg-Süd failed one after the other, the last no later than just a year ago.