Hapag-Lloyd and UASC today pushed through further consolidation in the liner shipping industry as the pair finally completed their merger.
The UASC brand will be gone by the end of October when the integration will be complete. The merged entity will have a value of about $8bn, according to one market analyst.
A Hapag-Lloyd spokesperson told The Loadstar: “One of the biggest benefits will be cost savings: cost-cutting behaviour can be copied, but true synergies can only be achieved through M&A activity.
“By acquiring UASC we will have the youngest and largest, on average, fleet in the world. And the younger and larger your fleet is, the cheaper the cost per unit.
“It will also greatly diversify our product portfolio.”
The lines expect to see annual synergies of about $435m, with a significant portion realised next year and the full amount achieved in 2019. Hapag-Lloyd also said it would not be necessary to make any sizeable investments in new buildings in the next few years.
Full Content: The Loadstar
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