Merger talks between Hapag-Lloyd and Hamburg Sud have ground to a halt after the two German lines failed to reach agreement on the structure of a combined group.
Hapag-Lloyd shareholders issued a brief statement to that effect Sunday evening following three months of talks between the two German container lines that could have created the world’s fourth biggest carrier.
However, it is unclear whether the talks have totally collapsed or could still be revived.
Differences are not thought to reflect an argument over majority control, however, Hamburg Sud, the smaller of the pair in terms of fleet capacity but free of debt, is thought to want to have the larger shareholding.
That demand is understood to have been acceptable to most in the Hapag-Lloyd camp.
Both lines agree that they would benefit from combining forces into a much larger global player with a comprehensive service network.
However, Hapag-Lloyd shareholder Michael Kuehne who controls 28% of the line, while publicly supporting a merger, is thought to have made demands that were unacceptable to the Oetker family, which owns Hamburg Sud.
The two lines formally entered into merger negotiations just before Christmas.
Prior to that, they had discussed a merger in 1997, but those negotiations broke down when neither would agree to be the junior partner. That does not seem to be an insurmountable obstacle this time round.
But in recent weeks, the chances of a successful outcome appeared to recede, according to well-placed industry sources.
Hapag-Lloyd shareholders issued a brief statement to that effect Sunday evening following three months of talks between the two German container lines that could have created the world’s fourth biggest carrier.
However, it is unclear whether the talks have totally collapsed or could still be revived.
Differences are not thought to reflect an argument over majority control, however, Hamburg Sud, the smaller of the pair in terms of fleet capacity but free of debt, is thought to want to have the larger shareholding.
That demand is understood to have been acceptable to most in the Hapag-Lloyd camp.
Both lines agree that they would benefit from combining forces into a much larger global player with a comprehensive service network.
However, Hapag-Lloyd shareholder Michael Kuehne who controls 28% of the line, while publicly supporting a merger, is thought to have made demands that were unacceptable to the Oetker family, which owns Hamburg Sud.
The two lines formally entered into merger negotiations just before Christmas.
Prior to that, they had discussed a merger in 1997, but those negotiations broke down when neither would agree to be the junior partner. That does not seem to be an insurmountable obstacle this time round.
But in recent weeks, the chances of a successful outcome appeared to recede, according to well-placed industry sources.
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