Hapag-Lloyd, UASC Merger Delayed

Hapag-Lloyd and UASC have mutually agreed to delay the finalization of their merger, which will create a combined company worth about seven to eight billion euros ($7.5 to $8.6 billion) and the world's fifth largest shipping firm, until May 31.

The merger The companies had originally envisaged to close the transaction by March 31. All merger clearances, authority approvals and banking approvals have been obtained and the merger parties are arranging the final documentation for a closing of the business combination. This is not the first delay to the merger. The deal was expected to close by November 2016, but financing difficulties meant it was delayed until 2017.

Irrespective of the actual closing date, the Alliance will start its operation as of April 1, 2017 including all vessels as planned. Member carriers are Hapag-Lloyd, K Line, Mitsui O.S.K. Lines, Nippon Yusen Kaisha and Yang Ming.

(MarEx)