Hapag-Lloyd and UASC in merger talks

APRIL 21, 2016 — Hapag-Lloyd AG (HL) and United Arab Shipping Company SAG (UASC) say they are currently discussing forms of cooperation including a potential combination of their mutual container shipping operations.

“In case of a business combination, the parties are basing their discussions on a relative valuation of the two businesses at 72% (HL) and 28% (UASC), subject to a mutually satisfactory completion of the negotiations and the mutual due diligence exercise,” says a statement released today. “To date, the discussions conducted between the two carriers have not resulted in any binding agreement and no assurance can be given that these discussions will lead to a definitive agreement.”