Maersk Line acquisition of Hamburg Süd

Overview:

• Danish shipping group Maersk Line is set to acquire German liner Hamburg Süd from Oetker Group for €3.7 billion.
• The parties signed a sale and purchase agreement in March 2017, and the boards of both parties approved the deal in late April 2017.
• Maersk is financing the deal with a syndicated loan.
• Hamburg Süd is the world's seventh largest shipping line and its acquisition will strengthens Maersk's position as the world's biggest freight shipping operator.
• Following the acquisition Maersk's market share will increase to 18.6% from 15.7%.  
• The deal signals the end of German family-owned group Oetker's involvement in shipping. 
• Consolidation in the global shipping industry has become common recently as overcapacity has driven rates to an all-time low. 
• Other recent shipping mergers deals include Hapag-Lloyd's merger with United Arab Shipping Company.
• The deal's completion is subtext to regulatory approval but Maersk expects its to close at the end of 2017.  

Ben Naylor - Regional editor