Strength in a name
Maersk Line reached an agreement on 1 December 2016 to acquire Hamburg Süd, the German container shipping line. Hamburg Süd is the world’s seventh largest container shipping line and a leader in the North-South trades.
The acquisition is subject to final agreement expected in the first half of 2017 and to regulatory approvals. The transaction is expected to be completed by end 2017.
It brings more than volume and revenue to A.P. Moller - Maersk, and this is reflected in the terms of the deal.
“Hamburg Süd is a very well-run company and a highly respected carrier – with strong brands, dedicated employees, an attractive fleet and a good client base,” says Søren Toft, Chief Operating Officer, Maersk Line.
“Preserving this, including the support of its many customers, is essential. Therefore, Hamburg Süd will continue as a separate brand. We will maintain both the head office in Hamburg and the regional Commercial and Operations structure.”
The acquisition gives Maersk Line 26% additional revenue and a much stronger leadership position in container shipping, increasing its global market share by 3% to 18%, specifically adding nearly 17% in Latin and Intra-America trade.
The German carrier’s strong customer base in Latin America and Oceania strengthens the combined network’s presence in these areas, particularly regarding reefer cargo, and creates a dual-brand platform similar to Safmarine and Maersk Line in Africa with which to serve customers.
As a result of the deal, customers will see the products menu grow, with more weekly sailings, lower transit times and more direct port-to-port options, as well as new services. If regulators approve the deal, Hamburg Süd’s operations under the Maersk Line umbrella will begin in late 2017.