Hapag-Lloyd and UASC Reach Agreement on Merger Terms

by Ship & Bunker News Team
Thursday June 30, 2016

Hapag-Lloyd AG (Hapag-Lloyd) has reached an agreement with United Arab Shipping Company (UASC) on a merger deal that will see the two companies come together for a group with an estimated 7 to 8 billion ($7.78 to 8.9 billion) value, Reuters reports.

It is reported that Hapag-Lloyd's supervisory board has approved the deal, while UASC's shareholders still need to approve the plan.

UASC is said to be set to hold an extraordinary general meeting (EGM) in Dubai on June 29 in order hold a shareholder vote on the issue.

As Ship & Bunker has reported, Hapag-Lloyd has been in discussions with UASC since April over what was said to be a cooperation agreement that was expected to include a merger of operations.

The proposed deal would see Hapag-Lloyd takeover all UASC's shares, the majority of which are held by the government of Qatar.

Earlier this month, UASC announced that the company's shareholders had expressed support for continuing negotiations for a possible merger of operations with Hapag-Lloyd.