World News
UASC to Decide on Operations Merger with Hapag-Lloyd in June
Hapag-Lloyd AG (Hapag-Lloyd) Wednesday announced that the United Arab Shipping Company (UASC) is set to hold a shareholders vote at an extraordinary general meeting on June 2 to decide whether the company should proceed in finalising an agreement to merge operations with Hapag-Lloyd.
"The talks between HL and UASC regarding a potential combination of their respective container shipping operations are ongoing; no binding agreement has yet been reached," the company wrote in a statement released Thursday.
As Ship & Bunker previously reported, the companies are said to be basing negotiations on relative business valuations of 72 percent for Hapag-Lloyd, and 28 percent for UASC - a combination that would create the world's fifth-largest container shipping group with 7.2 percent of global capacity, according to Alphaliner data.
If approved by UASC shareholders, such a transaction is noted to still be subject to the further approval of applicable regulatory authorities, as well as relevant Hapag-Lloyd administration, shareholders, and other stakeholders.
Last week, Ship & Bunker reported that Hapag-Lloyd was one of six carriers said to have combined to form a new container carrier alliance, known as "THE Alliance," with UASC expected to eventually become part of the alliance as well.
Key Bunker Prices More
| VLSFO | MGO | |||
|---|---|---|---|---|
| $/mt | +/- | $/mt | +/- | |
| Singapore | 645.00 | 2.00 | 767.50 | 11.50 |
| Rotterdam | 600.00 | 8.00 | 751.50 | 13.00 |
| Houston | 627.50 | 9.00 | 796.00 | 11.50 |
| Fujairah | 649.50 | 0.00 | 889.00 | 0.50 |
| Global 20 Ports Average | 665.00 | 0.50 | 864.00 | 6.50 |
| Global 4 Ports Average | 630.50 | 5.00 | 801.00 | 9.00 |
| Global Average Bunker Price | 722.50 | 2.50 | 922.50 | 3.00 |
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