Hapag and UASC Solidify Merger Agreement

Hapag-Lloyd (Hapag) and United Arab Shipping Company (UASC) have agreed to the terms of a merger that is expected to be completed by the end of the 3rd quarter. The merger will combine the 118 services of Hapag and the 45 services of UASC, equating to 163 services that are capable of moving over 10 million TEU’s per year.

The merger will create a fleet of 230 ships with an average vessel capacity of 6,840 TEU’s and an average vessel age of 7.2 years. The combined force is expected to generate an additional $435 million in annual revenue through an integration of UASC’s Middle Eastern trade lanes and Hapag’s Asiatic and European markets. UASC is expected to continue operations under the UASC brand name, with Hapag operational and IT teams beginning to oversee UASC transport volume in as little as 8 weeks.

Hapag has successfully completed two large-scale mergers in the past 15 years and is optimistic in a quick and seamless integration with UASC. Hapag will remain a publicly traded company and the merger with UASC will only stand to strengthen the global reach of “THE” Alliance – the vessel sharing troop in which Hapag is a member alongside MOL, Yang Ming, NYK and K-Line.

Shapiro will continue to monitor the situation and will advise of any important updates.