HAMBURG/KUWAIT: July 18, 2016. Hapag-Lloyd and the United Arab Shipping Company (UASC) are to merge. Subject to regulatory approvals, the deal is expected to complete at the end of 2016 and put the combined company in the top five container lines worldwide.

The controlling shareholders in Hapag-Lloyd: CSAV Germany, HGV and Kühne Maritime, will be joined by principal UASC shareholders Qatar and the Kingdom of Saudi Arabia who will hold 14 percent and 10 percent respectively of the combined company. The new shareholder group will underwrite US$400 million in new capital within six months after the deal closes.

Based in Hamburg the new Hapag-Lloyd will operate 237 vessels with an average age of 6.6 years, provide an annual transport volume of 10 million TEU, and produce a combined turnover of US$12 billion. The company will be part of the previously announced “THE Alliance” of Hanjin, Hapag-Lloyd, K-Line, Mitsui O.S.K Lines, Nippon Yusen Kaisha and Yang Ming, scheduled to begin in April next year and cover all East-West trade lanes.

“This strategic merger makes a lot of sense for both carriers – as we are able to combine UASC’s emerging global presence and young and highly efficient fleet with Hapag-Lloyd’s broad, diversified market coverage and strong customer base. Furthermore it will give the new Hapag-Lloyd access to Ultra Large Container Vessels,” said Rolf Habben Jansen, CEO of Hapag-Lloyd.

“The new transaction is strengthening not only our market position, but also our service portfolio. The merger will create annual net synergies of at least US$400 million and save a significant amount of capital expenditure for the company,” added Michael Behrendt, Hapag-Lloyd Supervisory Board chairman.