Hapag-Lloyd and United Arab Shipping Company announce merger talks


Hapag-Lloyd AG (HL) and United Arab Shipping Company SAG (UASC) have announced the commencement of discussions to form a cooperation including a potential combination of their mutual container shipping operations.

According to the announcement, in case of a business combination the parties are basing their discussions on a relative valuation of the two businesses at 72% (HL) and 28% (UASC), subject to a mutually satisfactory completion of the negotiations and the mutual due diligence exercise.

The announcement noted that, to date, the discussions conducted between the two carriers have not resulted in any binding agreement and no assurance can be given that these discussions will lead to a definitive agreement.

Source: Hapag-Lloyd