Hapag-Lloyd and the Chilean Compañía Sud Americana de Vapores (CSAV) are joining forces, by merging CSAV´s container business activities into Hapag-Lloyd, becoming the fourth-largest liner shipping company in the world, the German company said in a release.
The merger of Hapag-Lloyd AG with the container business activities of the Chilean shipping company founded in Valparaíso, in 1872, is expected to result in many synergies. Annual savings of at least USD 300 million are anticipated as a result of network optimizations, improvements to productivity and reductions in costs. The merged company will have around 200 vessels with a total capacity of approximately one million TEU, transporting some 7.5 million TEU every year, and will set up its fourth regional headquarter in Valparaiso, Chile. The company is expected to have revenue of around USD 12 billion.
Rolf Habben Jansen, Chief Executive Officer of Hapag-Lloyd, said: “This is a big day for both companies. With Hapag-Lloyd’s strength in Asian traffic and on the North Atlantic, combined with CSAV’s strong position in Latin America, we will become the leading shipping company in this region – and thereby be able to offer our global customers an even more attractive network and wider range of products. Our ability to compete will also be significantly enhanced by closing the gap to the top three of our industry. There will be no major changes to the way we work until the transition to the Hapag-Lloyd systems towards the end of the first quarter 2015.”
The main processes of integrating CSAV’s container business into Hapag-Lloyd are expected to be completed by the end of the second quarter of 2015.
In addition to integrating CSAV’s container business into Hapag-Lloyd, there are also plans to strengthen the company by raising capital of EUR 370 million (USD 457.6m) by December 31, 2014, in which CSAV will take a share of EUR 259 million (USD 320.3m) and Kühne Maritime EUR 111 million (USD 137.3m) .
The ownership structure of Hapag-Lloyd AG will therefore change as follows: CSAV will become Hapag-Lloyd’s biggest shareholder with 34% after the cash capital increase. The other shareholders are HGV (23.2%), Kühne Maritime (20.8%), TUI (13.9%), Signal Iduna (3.3%), HSH Nordbank (1.8%), M.M. Warburg (1.8%) and Hanse Merkur (1.1%).
CSAV, HGV and Kühne Maritime have agreed to pool 51% of the shares in Hapag-Lloyd in order to discuss and make key decisions together in the future. Of this pool structure, CSAV owns a 50% participation, while HGV and Kühne Maritime will own 25% each.
CSAV / HAPAG LLOYD
2 Dec 14
Dear Sir or Madam,
We would like to introduce ourselves to you as an esteemed CSAV customer. Today is a big day for CSAV: following months of preparation, just a few hours ago we overcame the final obstacles to complete the merger of CSAV’s container liner business and Hapag-Lloyd. Thus, CSAV’s container business is now technically a part of Hapag-Lloyd. As a result, the new Hapag-Lloyd will now be able to offer you an even better product and an even greater variety of services. A larger fleet of vessels, one of the most extensive and modern fleets of reefer containers, an expanded service network with additional port connections, shorter transit times, cabotage shipments in South America and a stronger sales team are just some of the many advantages from which you will benefit.
We have worked towards this day with a great deal of commitment and motivation in recent months and have done everything within our power to guarantee a smooth transition. For the time being there will be no substantial changes for you: all existing contracts will be honored – and the entire booking and customer services will continue as today. We will begin to gradually transfer CSAV’s services to the Hapag-Lloyd IT systems in March 2015. Until mid of 2015 we expect to merge all operational items and then be one company in the future.
We will, of course, keep you up to date on how the transition is progressing and will notify you of any changes this process entails. Our local employees will be happy to help with any questions you may have.
You can rest assured that you will continue to enjoy the first-class service that you are accustomed to receiving from us. Thank you for your loyalty and the trust you place in our company. We look forward to shaping the future of the new Hapag-Lloyd together.
To view our full press release please click here.
Kind regards
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