The Danish shipping giant has confirmed it is selling its Brazilian cabotage subsidiary Mercosul Line in a preemptive move aimed at satisfying any potential competition concerns from Brazil’s Conselho Administrativo de Defesa Economica (CADE).
A.P. Møller–Mærsk Group is putting Brazilian cabotage subsidiary Mercosul Line up for sale as part of it’s deal to acquire container carrier Hamburg Süd from the German conglomerate Oetker Group, the company has confirmed.
The Danish shipping giant is selling its Brazilian cabotage subsidiary Mercosul Line in a preemptive move aimed at satisfying any potential competition concerns from Brazil’s Conselho Administrativo de Defesa Economica (CADE).
Based in São Paulo, Brazil, Mercosul Line operates four vessels with 2,500 TEUs of capacity each on two services connecting the country’s major seaports, according to information on the company’s website.
Hamburg Süd subsidiary Aliança Navegação e Logística currently controls 59 percent of the Brazilian cabotage market, while Mercosul controls around 21 percent, with the remaining share controlled by the companies’ sole competitor, Log-In Logística Intermodal, according to a report from Container Management Magazine.
Multiple media reports said bidders for the firm include CMA CGM of France; Geneva-based Mediterranean Shipping Co. (MSC); China’s COSCO Shipping, NYK of Japan; as well as Germany’s Hapag-Lloyd, which a few years back bought Chilean north-south specialist CSAV.
“With the purpose of securing the Brazilian competition authorities’ (CADE) swift approval of the Hamburg Süd acquisition, it has been decided to divest Mercosul from A.P. Møller – Mærsk,” a Maersk spokesperson said in an email to American Shipper. “The divestment will ensure that the cabotage sector in Brazil remains competitive and that customers can benefit from a comprehensive choice of carriers.”
Maersk first announced its intentions to acquire Hamburg Süd, the world’s seventh largest container shipping line and a leader in the north-south trades, for an undisclosed price back in December 2016.
If completed, the deal would increase Maersk’s overall containership fleet from 3.14 million TEUs to 3.76 million TEUs, growing its share of the world container fleet from 15.7 percent to 18.6 percent.
Maersk to sell Mercosul as part of Hamburg Süd deal
