German Hapag-Lloyd delays Bahrain’s United Arab Shipping takeover
German ocean carrier, Hapag-Lloyd, has reached an agreement with Bahrain-based United Arab Shipping Company to shift the long-stop date (the day when both merger parties could optionally withdraw from the whole transaction without giving any reasons if the closing has not happened until then) under the business combination agreement (BCA) until May 31.
Hapag-Lloyd pointed out that the BCA had been amended accordingly through mutual agreement. The postponement is mainly due to the final preparations for the closing which is set to take more time than expected, said the German ocean carrier clarifiying that the transaction was not at any risk.
The merger companies had originally envisaged to close the transaction by March 31 but now expect closing to take place in the weeks thereafter.
All merger clearances and authority approvals as well as all necessary banking approvals from Hapag-Lloyd AGs side and substantially all banking approvals from UASCs side have been obtained and the merger parties are arranging the final documentation for a closing of the business combination, it stated.
Hapag-Lloyd stressed that irrespective of the actual closing date the alliance will start its operation on April 1 including all vessels as planned.
The first time consolidation of UASC into Hapag-Lloyd will take place as of closing, it added.
On competion of the merger, the new company will rank among the world´s five largest liner shipping companies and will operate one of the most modern fleets in the industry. It will boast 237 vessels with total transport capacity of around 1,6 million TEU.
In addition to Hapag-Lloyd/UASC, the alliance will include Japan’s big three shipping groups NYK, MOL, and K Line, besides Taiwanese marine group Yang Ming.