Hapag-Lloyd is a global container shipping company. Its core business concerns the transportation of containers by sea, but also encompasses transport services from door to door. It also performs container handling services at two port terminals that it has stakes in.
At January 1, 2013, the company had the world's sixth largest fleet of container vessels in terms of total container capacity.
Hapag-Lloyd is majority owned by the Albert Ballin Consortium, while the TUI Group has a minority stake.For 2014, Hapag-Lloyd reported revenues of €6.8bn.
April - Hapag-Lloyd AG and Compañía Sud Americana de Vapores (CSAV) announced that they had signed a binding contract on merging CSAV’s entire container business with Hapag-Lloyd, subject to the necessary approvals. After the integration, Hapag-Lloyd would operate some 200 vessels with total transport capacity of around 1m TEUs, an annual transport volume of 7.5m TEUs and a combined turnover of €9bn. The company’s head office was set to remain in Hamburg. In addition, Hapag-Lloyd stated that it would establish a regional office in Chile for its Latin America business.
In return for contributing its container business, CSAV became a Hapag-Lloyd core shareholder besides HGV, City of Hamburg, and Kühne Maritime. CSAV held a 30% stake in the combined entity. The partners agreed on a capital increase of €370m once the transaction was concluded, to which CSAV would contribute €259m. This would then increase CSAV’s share of Hapag-Lloyd to 34%. A second capital increase of €370m would be linked to Hapag-Lloyd’s planned stock exchange listing.
“I am delighted that we have succeeded in concluding this partnership through which our two companies are playing an active part in consolidating the liner shipping industry,” said the Chairman of the Executive Board of Hapag-Lloyd. “The transaction increases the value of the company and therefore also the value of our shareholders’ shares.”
The Chief Executive Officer of CSAV said, “The combination with CSAV, Latin America’s leading container shipping line, considerably strengthens Hapag-Lloyd in this growth market and adds a strong position in the north-south traffic to the company’s global network and to its established strength in east-west traffics.”
The relevant corporate bodies of both companies had already approved the merger. The closing of the transaction was subject to the approval of competition authorities. Another condition was that not more than 5% of CSAV´s minority shareholders should exercise their appraisal rights before the April 20, 2014. Until that time, dissident CSAV shareholders had the right to withdraw. The company defined that this appraisal right should be exercised by holders of less than 5% of the company’s total shares in order for the merger with Hapag-Lloyd to be completed.