Maersk Line and Hamburg Süd Sale and Purchase Agreement Receives Board Approvals

Maersk Line is set to acquire Hamburg Süd for €3.7 billion. Image: Maersk

A.P. Moller–Maersk Group (Maersk) today announced that the sale and purchase agreement for Maersk Line's acquisition of Hamburg Süd was approved by the boards of Maersk Line and the Dr. August Oetker KG (Dr. Oetker).

The €3.7 billion ($4.03 million) acquisition still remains subject to regulatory approvals.

"Today, we have taken a decisive step towards the shared future of Maersk Line and Hamburg Süd. Our due diligence confirmed that Hamburg Süd is a well-run company with strong and highly respected brands. We have confirmed the anticipated synergies and we are convinced that our plan to maximise customer retention is the right path forward," said Søren Skou, CEO of Maersk.

"I have no doubt that together we can develop new competitive products to the benefit of our customers and exploit operational synergies. The acquisition is cementing our position as the largest and leading carrier in container shipping, and it will provide great opportunities for the employees of both companies."

Under the acquisition agreement, Hamburg Süd will maintain its own structure, its separate brands, and is expected to add to Maersk Line's growth agenda.

"By keeping Hamburg Süd as a separate and well-run company, we will limit the transaction and integration risks and costs while still extracting the operational synergies. The acquisition of Hamburg Süd will therefore create substantial value to Maersk Line already in 2019," said Skou.

As Ship & Bunker has reported, the deal is expected to be completed during the current financial quarter.