Germany’s shipping major Hapag-Lloyd has dismissed reports that its French counterpart CMA CGM proposed a merger between the parties.
Reuters reported that CMA CGM, the world’s third largest shipping firm, made an exploratory approach to Hapag-Lloyd over a possible merger.
However, a Hapag-Lloyd spokesperson said that “there is no substance on these market rumors.”
Citing three undisclosed finance sources, Reuters explained that CMA CGM had initiated the discussions with Hapag-Lloyd in recent months in an effort to devise some form of share merger.
Reuters added that the approach had been rejected by the German company’s major shareholders, including Chile’s Compañía Sudamericana de Vapores (CSAV), German Kuehne family and HGV, which manages the investments for Germany’s Hamburg.
Pressured by an oversupply of vessels, the container shipping sector reported some of its worst performing years on record. Such depressed conditions led to a wave of consolidation in recent years, shrinking the number of global container lines.
While some container shipping companies had to pull out of the business, a number of others were forced to combine with their counterparts in order to survive market headwinds.
World Maritime News Staff