The Arab ocean carrier’s shareholders would own 28 percent of the combined company, while the existing shareholders of Hapag-Lloyd would own 72 percent of the new company.
Shareholders of ocean carrier United Arab Shipping Company (UASC), which include six Middle Eastern nations, voted unanimously to approve a proposed merger with Hapag-Lloyd of Germany during a meeting at UASC’s corporate office in Dubai on Wednesday.
UASC’s shareholders – comprised of Qatar, Saudi Arabia, Kuwait, Iraq, the United Arab Emirates and Bahrain – will own 28 percent of the combined company, while the existing shareholders of Hapag-Lloyd will own 72 percent of the new company.
As a result of the proposed merger, Hapag-Lloyd would become the fifth largest container shipping company in the world.
“Several legal and administrative tasks need to be completed before the binding agreement can be formally signed,” UASC said. “Both companies will initiate the requests for the necessary regulatory approvals. Until then, both companies will continue to operate as independent, stand-alone companies.”
UASC also said, “Once the regulatory approvals are received, the integration of some activities are expected to begin. However, both companies will still continue to operate in their current alliances until the end of March 2017.”
The Arab carrier is currently a member of the Ocean 3 Alliance, which is being dissolved next year. Hapag-Lloyd, currently a member of the G6 Alliance, is slated to join THE Alliance next year.
Hapag-Lloyd had revealed Tuesday an agreement to merge had been reached, subject to yesterday’s vote.
UASC shareholders agree to Hapag-Lloyd merger
