COPENHAGEN (dpa-AFX) - A.P. Møller - Mærsk A/S (AMKAF.PK, AMKBF.PK) said Friday that the sale and purchase agreement for Maersk Line's acquisition of Hamburg Süd was approved by the boards of Maersk Line and the Oetker Group. The acquisition still remains subject to regulatory approvals.
Maersk Line will acquire Hamburg Süd for 3.7 billion euros on a cash and debt-free basis. Maersk Line will finance the acquisition through a syndicated loan facility.
On 1 December 2016, Maersk Line announced its intention to acquire Hamburg Süd, the German container shipping line, and on 14 March 2017, Maersk Line announced the signing of a sale and purchase agreement with the Oetker Group, owner of Hamburg Süd.
Combined, the two companies will be able to realise operational synergies in the region of USD 350-400 million annually over the first couple of years following completion of the transaction, A.P. Møller - Mærsk said.
A.P. Møller - Mærsk noted that the acquisition of Hamburg Süd will therefore create substantial value to Maersk Line in 2019.
The company also commits to maintain the presence of Hamburg Süd in Hamburg, Germany, and has agreed to lease the local head office, initially for a period of five years.
With the acquisition, Maersk Line and Hamburg Süd will have a total container capacity of around 3.9 million TEU (3.3 million TEU) and an 18.7% (16.0%) global capacity share (Alphaliner per 24 April 2017). The combined fleet will consist of 743 container vessels.
The process of obtaining regulatory approvals is on schedule. On 23 March 2017, the US Department of Justice approved the proposed acquisition and on 10 April 2017, the EU Commission approved the proposed acquisition, subject to conditions.
Maersk Line expects to close the transaction by the end of 2017. Until then, Hamburg Süd and Maersk Line will continue business as usual as separate and independent companies.
Copyright RTT News/dpa-AFX