A.P. Møller-Maersk Line to acquire Sea-Land's international shipping business
7/22/1999 12:00 AM
CSX Corp. to Retain Sea-Land's Domestic Container and some Terminal Operations.
Washington, July 22, 1999 - The A.P. Moller Group and CSX Corp. announce that agreement has been reached for A.P. Møller-Maersk Line to acquire Sea-Land Service, Inc.'s international liner business including vessels, containers, related container terminals, and certain lease obligations from CSX. The agreed purchase price is USD 800 million.
Sea-Land operates approximately 70 container vessels and about 200,000 containers in its international trades.
The agreement is seen by both parties as a natural development of the close partnership currently in place, and the combined services will be marketed under the name of Maersk-SeaLand.
Mr Ib Kruse, Partner of A.P. Møller, says that "the operation and management will be fully integrated drawing on the best from both organizations. Maersk-SeaLand will offer a wide range of services, unmatched in the industry, for the benefit of our customers worldwide."
Mr John W. Snow, Chairman and Chief Executive Officer of CSX Corp., says "Maersk is a terrific company that will become even stronger. Sea-Land has been at the forefront in shaping global trade patterns and introducing container-shipping innovation. For CSX, this is a significant opportunity to enhance shareholder value and refocus our maritime resources on our well-positioned domestic container shipping business and terminal management operations. Importantly, the transaction protects national security interests under the U.S. Maritime Security Program."
Domestic container shipping to and from Alaska, Hawaii, Puerto Rico, and Guam, as well as certain terminal facilities (including facilities in Hong Kong) are not part of the agreement and will remain under CSX ownership.
The acquisition is subject to due diligence and approvals from authorities. CSX and A.P. Møller expect it to take approximately four months to finalize the transaction.