Maersk Line said to have agreed to buy Hamburg Sud in US$4b deal
DANISH shipping giant Maersk Line has agreed to pay about US$4 billion to buy German shipping line Hamburg Sud, according to people familiar with the discussions, making it one of the biggest deals for a container operator.
The deal, which is subject to regulatory approvals around the world, is expected to be completed by the end of next year, and the final price is subject to the completion of due diligence, The Wall Street Journal reported.
The acquisition of the German shipping line will help Maersk boost its presence on North-South shipping routes.
"With the addition of Hamburg Sud we will become the leading player in trades in and out of Latin America," Soren Skou, Maersk chief executive said in an interview.
Hamburg Sud has a 25 per cent share of all shipments in and out of Brazil. The deal would boost Maersk Line's share of global seaborne freight to 18.6 per cent from 15.7 per cent, according to maritime data provider Alphaliner.
Maersk shares closed 6.7 per cent higher on Thursday in Copenhagen after the announcement of the deal.
DANISH shipping giant Maersk Line has agreed to pay about US$4 billion to buy German shipping line Hamburg Sud, according to people familiar with the discussions, making it one of the biggest deals for a container operator.
The deal, which is subject to regulatory approvals around the world, is expected to be completed by the end of next year, and the final price is subject to the completion of due diligence, The Wall Street Journal reported.
The acquisition of the German shipping line will help Maersk boost its presence on North-South shipping routes.
"With the addition of Hamburg Sud we will become the leading player in trades in and out of Latin America," Soren Skou, Maersk chief executive said in an interview.
Hamburg Sud has a 25 per cent share of all shipments in and out of Brazil. The deal would boost Maersk Line's share of global seaborne freight to 18.6 per cent from 15.7 per cent, according to maritime data provider Alphaliner.
Maersk shares closed 6.7 per cent higher on Thursday in Copenhagen after the announcement of the deal.