CNCo to Acquire Hamburg Süd’s Bulk Shipping Activities
- Business & Finance
The China Navigation Company (CNCo), a subsidiary of the Swire Group, has entered into an agreement with German shipping company Hamburg Süd to acquire the latter’s bulk shipping business.
Hamburg Süd’s bulk shipping brands include Rudolf A. Oetker (RAO), Furness Withy Chartering and the bulk activities in Alianca Navegacão (Aliabulk). The RAO Tankers business unit is not included in the sale and will remain part of the Hamburg Süd Group for the time being.
The bulk shipping business in Hamburg Süd operates from Hamburg, London, Melbourne and Rio de Janeiro with a chartered fleet of approximately 45 vessels in the segments: Handysize, Supra/Ultramax and Kamsarmax/Panamax.
“With this step, Hamburg Süd is focusing as planned on its liner business with its two container shipping brands, Hamburg Süd and Aliança,” says Dr. Arnt Vespermann, CEO of Hamburg Süd.
“As part of Maersk, the world’s largest liner shipping company, this clear focus is a logical step. At the same time, CNCo is an established and well-respected company in bulk shipping that is on a growth course in this segment and therefore constitutes a good new home for RAO, Furness Withy and Aliança Bulk.”
“CNCo is excited to have successfully signed this acquisition,” commented James Woodrow, Managing Director of The China Navigation Company.
“There are some very natural synergies between the businesses and we are delighted to acquire such an experienced and high-quality team and business that complements our own modern eco fleet and helps to develop our strategic expansion in to the Supra/Ultramax segment.”
Closing of the agreement is expected by the end of the first quarter of 2019, subject to regulatory approval. The parties have agreed not to disclose the sales price.