Hapag-Lloyd Completes Integration of UASC
- Business & Finance
German shipping giant Hapag-Lloyd has completed the integration of UAE-based counterpart United Arab Shipping Company (UASC) into the group on November 30.
The companies merged on May 24, 2017, and within the subsequent six months, the operating businesses, the IT systems, the different fleets, and the corresponding departments and country organizations were brought together.
“Thanks to the very good cooperation of our teams we have managed to successfully implement this integration in just six months. In the process, our extensive experience from earlier mergers – such as with CP Ships in 2005 and with CSAV in 2014 – helped us a lot,” Rolf Habben Jansen, CEO of Hapag-Lloyd AG, said.
With a fleet of 215 modern container ships, offering 125 liner services in a global network, Hapag-Lloyd is now the fifth-largest liner shipping company in the world with one of the youngest and most competitive fleets in the sector, the company informed.
Beginning in 2019, Hapag-Lloyd expects annual synergies of USD 435 million as a result of the merger with UASC.
“Already in 2018, we will benefit from the merger of the two shipping companies due to significant cost reductions,” Habben Jansen concluded.
The parties signed a business combination agreement (BCA) in July 2016. Since then the approval was granted from roughly a dozen competition authorities across the world. In addition, changes in the corporate legal structure were made and the consent of several banks was obtained, the German carrier earlier said.