In a joint statement, the two carriers said that a mutual decision had been made to shift the ‘long-stop date’ under the business combination agreement, or BCA, from March 31 to May 31, as final preparations for closing the transaction were taking more time than expected.
“The transaction itself is not at any risk,” the lines said.
In a further update, Hapag-Loyd and UASC added that all merger clearances and authority approvals, as well as all necessary banking approvals from either side, had been obtained.
It was now just a case of the merger parties arranging the final documentation for a closing of the business combination, according to the carriers.
The lines also stated that The Alliance, of which both are member parties, will begin operations as planned from April 1 and with all vessels as previously stipulated.
The merger of Hapag-Lloyd and UASC will see them elevated to be the world’s fourth-largest box line ahead of Cosco and the soon-to-be merged Japanese lines.
The amalgamation will provide Hapag-Lloyd with access to UASC’s fleet of 18,000-plus teu ships, fulfilling its long-term objective of being one of the big tonnage providers on the Asia-Europe trade.
Combined, the pair will boast annual transport volumes of around 10m teu and a turnover of about $12bn.
Source: Lloyd’s List
