Hungry Maersk said to be eying Hanjin, Hyundai in new acquisition plan
THE world's largest container shipping company, AP Moeller-Maersk, which recently ditched a strategy of building new vessels and will instead try to grow through acquisitions.
To this end, it is targeting South Korea's two biggest shipping firms, according to Jefferies International, Bloomberg reported.
Hanjin Shipping last month filed for bankruptcy protection and Hyundai Merchant Marine is in the middle of a creditor-led debt-restructuring programme.
Both are in need of a strong partner and Maersk Line is probably the only rival with the financial muscle to manage a takeover, said David Kerstens, Jefferies' transport analyst in London.
"Maersk, as the market leader, will definitely participate in the consolidation - they will have to," Mr Kerstens said.
But "the takeover options for Maersk are limited, as most container lines are already tied up in alliances or are family or government-controlled.
The most likely scenario is that Maersk would take over the assets of Hyundai and Hanjin".
Maersk chairman Michael Pram Rasmussen said the company's container line - long a pioneer in ship building - will now pursue takeovers to avoid flooding the market with new vessels.
But he declined to comment on Hanjin Shipping and Hyundai Merchant. A spokeswoman at Hanjin and a spokesman at Hyundai Merchant declined to comment.
After years of surplus capacity and declining freight rates, the container shipping industry is in dire need of further consolidation if it is to weather a slowdown in global trade growth. Liners have already responded with mergers and formed vessel-sharing alliances to cut costs, but more needs to happen.
"There's been a lot of consolidation this year and many of the container lines just behind Maersk have grown," Mr Kerstens said. "So Maersk is faced with substantially stronger competition."
Mr Kerstens, and fellow analyst Rahul Kapoor at Drewry Financial Research Services, said Maersk would be more interested in buying Hanjin Shipping's vessels rather than the bankrupt company. The South Korean firm's container ships are worth about US$1.4 billion, according to VesselsValue.
Maersk Line, which as market leader controls about 15 per cent of the world's container capacity, only ranks third in transpacific trade, where it ships eight per cent. Buying Hanjin Shipping and Hyundai Merchant would double its market share on that route, Mr Kerstens said.
THE world's largest container shipping company, AP Moeller-Maersk, which recently ditched a strategy of building new vessels and will instead try to grow through acquisitions.
To this end, it is targeting South Korea's two biggest shipping firms, according to Jefferies International, Bloomberg reported.
Hanjin Shipping last month filed for bankruptcy protection and Hyundai Merchant Marine is in the middle of a creditor-led debt-restructuring programme.
Both are in need of a strong partner and Maersk Line is probably the only rival with the financial muscle to manage a takeover, said David Kerstens, Jefferies' transport analyst in London.
"Maersk, as the market leader, will definitely participate in the consolidation - they will have to," Mr Kerstens said.
But "the takeover options for Maersk are limited, as most container lines are already tied up in alliances or are family or government-controlled.
The most likely scenario is that Maersk would take over the assets of Hyundai and Hanjin".
Maersk chairman Michael Pram Rasmussen said the company's container line - long a pioneer in ship building - will now pursue takeovers to avoid flooding the market with new vessels.
But he declined to comment on Hanjin Shipping and Hyundai Merchant. A spokeswoman at Hanjin and a spokesman at Hyundai Merchant declined to comment.
After years of surplus capacity and declining freight rates, the container shipping industry is in dire need of further consolidation if it is to weather a slowdown in global trade growth. Liners have already responded with mergers and formed vessel-sharing alliances to cut costs, but more needs to happen.
"There's been a lot of consolidation this year and many of the container lines just behind Maersk have grown," Mr Kerstens said. "So Maersk is faced with substantially stronger competition."
Mr Kerstens, and fellow analyst Rahul Kapoor at Drewry Financial Research Services, said Maersk would be more interested in buying Hanjin Shipping's vessels rather than the bankrupt company. The South Korean firm's container ships are worth about US$1.4 billion, according to VesselsValue.
Maersk Line, which as market leader controls about 15 per cent of the world's container capacity, only ranks third in transpacific trade, where it ships eight per cent. Buying Hanjin Shipping and Hyundai Merchant would double its market share on that route, Mr Kerstens said.