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Friday, December 9, 2016

European Commission Gives Conditional Backing to Hapag-Lloyd, UASC Merger

Posted by November 23, 2016

File photo: Hapag-Lloyd

File photo: Hapag-Lloyd

The European Commission on Wednesday said it has given its conditional approval to a merger between German container shipping line Hapag-Lloyd and the United Arab Shipping Company (UASC).
 
The merger would create a combined company worth about 7 to 8 billion euros ($7.5-$8.6 billion). It would be the world's fifth largest shipping firm, with access to the Asia-to-Europe trade route and trans-Atlantic and trans-Pacific routes.
 
"Both companies operate in the container liner shipping sector," the Commission said. "The clearance is conditional on the withdrawal of UASC from a consortium on the trade routes between Northern Europe and North America, where the merged entity would have faced insufficient competitive constraint."
 
 
(Writing by Gabriela Baczynska)
AsiaEuropeEuropean Commission