# Maersk Line linked to Hamburg Süd acquisition



## RHP (Nov 1, 2007)

Maersk Line has stated publicly that it is looking for acquisition opportunities in the absence of organic growth.

Danish line said to have reached an advanced stage of takeover negotiations

MAERSK Line is reported to be closing in on Hamburg Süd, the privately owned German shipping group.

The Danish line, which has not concluded an acquisition since 2005, when it bought P&O Nedlloyd, is said to be in pole position to buy Hamburg Süd from the Oetker family. However, it is unclear whether other interested parties are still in the running.

As Lloyd’s List reported last week, the eight Oetker siblings who own Hamburg Süd are considering whether or not to remain in shipping. They are understood to have held a meeting over the weekend.

That coincided with speculation that the process of selling Hamburg Süd may have reached a fairly advanced stage, with an announcement possible any day now.

Maersk has been linked to Hamburg Süd for some time, and has already stated publicly that it is looking for acquisition opportunities in the absence of organic growth. The line would not comment on the latest rumours.

North-south specialist Hamburg Süd is ranked number seven in the world with a fleet capacity of 600,000 teu, according to Alphaliner. That would lift Maersk Line’s fleet to around 3.8m teu, well ahead of second-placed Mediterranean Shipping Co.

Maersk Line was one of the bidders for Neptune Orient Lines last year, but lost out to CMA CGM.

Group chief executive Søren Skou has been a keen advocate of industry consolidation, even though Maersk Line has been on the sidelines so far during this latest round.

Should it now buy Hamburg Süd, interest would focus in part on whether the brand is kept. Maersk has a mixed record on this, dropping the P&O Nedlloyd name while keeping Safmarine, which it had acquired some years earlier, because of its strong customer base in Africa. Likewise, it recently revived the SeaLand brand in the Americas trades.

The possible takeover of Hamburg Süd could explain why Maersk Line has now gone lukewarm on the idea of Hyundai Merchant Marine becoming a full member of the 2M alliance. Instead, a looser arrangement is now on the table.

The acquisition of Hamburg Süd would greatly strengthen Maersk Group’s plans to restructure itself into an integrated maritime and logistics group, with container shipping, ports and logistics coming together as a single entity.

One industry consultant described the acquisition of Hamburg Süd, should it happen, as a "very shrewd move" by Maersk.

Lloyd’s List reported last Thursday that Hamburg Süd’s future was set to be determined at a top-level meeting of shareholders to decide whether or not to sell the German shipping group.

At that time, three names were linked to an acquisition — Maersk Line, CMA CGM and Cosco Shipping.

Hapag-Lloyd was not seen as a contender, partly because it has since merged with the container arm of Compañía Sud Americana de Vapores after talks with Hamburg Süd broke down in 2013. Hapag-Lloyd is also combining with United Arab Shipping Co, a deal that should be completed very soon.

Because Hamburg Süd bought Chilean line Compañía Chilena de Navegación Interoceánica around the time that Hapag-Lloyd teamed up with Chile’s CSAV, there would also be competition issues, especially in the South American trades.

The Oetker Group, headed by Richard Oetker, is thought to be keen to avoid a repeat of the past, when merger negotiations with Hapag-Lloyd collapsed on two occasions, partly because of differences over who would be in charge of the enlarged line.

An added complication was an Oetker family feud between the eight children of the late Rudolf Oetker, who each have a shareholding of 12.5% in the group. They were said to be split 50:50 over whether to keep Hamburg Süd and continue to invest, or to pull out of shipping completely in order to focus on the rest of the group’s diverse business activities.

A spokesperson for Hamburg Süd said the line could not comment on Oetker family matters.

Hamburg Süd is one of the most highly regarded carriers in the business, but has found itself caught up in the turmoil that has engulfed the entire industry.

As a north-south specialist, the line has not been directly involved in the new alliances that are being established, but had signed a global co-operation agreement with United Arab Shipping Co in 2014 as it decided to venture into the east-west trades. But that partnership is about to end, with UASC acquiring a shareholding in Hapag-Lloyd and disappearing as an independent line.

Until recently, Hamburg Süd had enjoyed a strong position in its core trades, operating modern purpose-built ships with plenty of reefer capacity. But other lines have since muscled into this sector, deploying big ships that had been displaced by even larger vessels entering the main east-west routes. That has severely depressed freight rates.

Hamburg Süd does not publish profits, but said earlier this year that turnover was up almost 17% in 2015 to €6bn ($6.34bn), helped by the acquisition of CCNI, while volumes rose more than 21% to 4.1m teu. It operates ships of up to 10,600 teu, with a large reefer capability. The line is thought to be debt-free. As well as containerships, it also operates bulk carriers and product tankers in the tramp trades under the Rudolf A Oetker brand, a Hamburg Süd subsidiary.


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## Erimus (Feb 20, 2012)

......and the lunchtime bulletin from Lloyds Loading List confirms much of what appears above:-

Maersk Line is reported to be considering a possible acquisition of fellow European container line Hamburg Süd, whose owners are believed to be considering selling pursuing the world’s seventh-largest container shipping line. 

Citing “people with knowledge of the matter”, the Wall Street Journal today reported that the shipping arm of Danish conglomerate A.P. Moeller-Maersk was looking to buy its German peer, a deal that “would help Maersk Line boost its presence in global trade with Latin America”.

Lloyd’s List yesterday also reported that Maersk Line had been linked to the Hamburg Süd acquisition, with the Danish line “said to have reached an advanced stage of takeover negotiations”.

Asked to comment on reports suggesting that Maersk Line is pursuing an interest in acquiring Hamburg Süd, or even on whether it might be of theoretical interest, a Maersk Line spokesman said it was not something that the company wished to comment on, because of a policy not to comment on rumours and speculation.

As reported yesterday in Lloyd’s Loading List and Lloyd’s List, Hamburg Süd’s majority owner, the Oetker family, is reported to have called a summit to vote on whether to withdraw from shipping.

Hamburg Süd’s future is set to be mapped out this week at a top-level meeting of shareholders to decide whether or not to sell the German shipping group, according to talk in Hamburg, Lloyd’s List reports

geoff


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## Varley (Oct 1, 2006)

I imagine the oldest tonnage in a combined set up will be going directly to Turkey.


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## Engine Serang (Oct 15, 2012)

Is this the crowd that makes the frozen Pizza's?
If it is bought by Maersk will the Serang, the Memsahib and all our wee wanes have to eat raw herring on a Saturday night.


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## RHP (Nov 1, 2007)

Hefty price tag could deter Hamburg Sud potential buyers: Alphaliner

The Oetker family, which owns 100% of Hamburg Sud, is reportedly close to reaching a decision as to whether to sell the container line, having previously been unable to agree.

Alphaliner said the asking price for Hamburg Sud was believed to be close to $5bn and this “remains the largest stumbling block on the way to any deal”.

The line’s ships and container assets are listed with a book value of $2.19bn at the end of 2015. With very little debt a potential buyer would be looking at a cash offer.

Maersk Line has been flagged up as the most likely buyer and this fits with ceo Soren Skou’s previous comments on being involved in consolidation.

However, Alphaliner also flagged up French line CMA CGM as a potential suitor. “The carrier could face a strong challenge from CMA CGM, which appears keen to maintain growth momentum after completing the acquisition of APL in June this year,” it said in its weekly report.

However, CMA CGM could be limited by its debt burden of $9.6bn it was noted.

If Hamburg Sud is sold it would be the fifth major consolidation announced in container shipping in the space of a year following Cosco and China Shipping, CMA CGM and NOL/APL, Hapag-Lloyd and UASC, and the container businesses of NYK, Mitsui OSK Lines and K Line. With a 2.9% global market share Hamburg Sud is the mid-sized catergory which has been seen as particularly vulnerable following the collapse of Hanjin Shipping at the end of August, which also had a 2.9% market share.


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## RHP (Nov 1, 2007)

*Maersk Line to buy Hamburg Süd*

The deal follows a week of speculation about the future of Hamburg headquartered-line owned 100% by the Oekter Group.

*“Today is a new milestone in Maersk Line’s history. I am very pleased that we have reached an agreement with the Oetker Group to acquire Hamburg Süd,” said Søren Skou, ceo of Maersk Line and the Maersk Group.*

“Hamburg Süd is a very well-run and highly respected company with strong brands, dedicated employees and loyal customers. Hamburg Süd complements Maersk Line and together we can offer our customers the best of two worlds, first of all in the North - South trades.”

August Oetker, chairman of the Advisory Board of Dr. August Oetker KG, the management holding company of the Oetker Group commented: “Giving up our engagement in shipping after an 80 year-long ownership in Hamburg Süd was not an easy decision for my family. We are very confident, though, to have chosen the best of all possible partners.”

Dr. August KG said while global container shipping had been generating losses for years Hamburg Süd had performed well compared to its competitors.

However, it added: “The owners and management of Hamburg Süd must, however, recognize that active participation in the consolidation process of the sector currently taking place would entail an even higher capital requirement. This would, in addition, make the balancing of risk within the Oetker Group business portfolio more ***bersome.” The Oetker Group is perhaps best known globally for its frozen pizza brand.

Maersk said that Hamburg Süd and Aliança wiould continue as separate brands and continue to serve customers through their local offices.

“Hamburg Süd and Aliança have competitive and attractive customer value propositions, which we want to preserve and protect. We wish to maintain the personal touch and engagement they offer their customers. In short, Hamburg Süd and Aliança customers will also be Hamburg Süd and Aliança customers in the future,” said Skou.

The German line has 130 vessels with a total capacity of 625,000 teu. Based on figures from Alphaliner Maersk would have an 18.6% share of the global container shipping market following the deal.

Financial details of the deal were not disclosed. The acquisition is subject to final agreement, due diligence and regulatory approvals. The transaction is expected to be closed late 2017 at the earliest.
++

You heard it first on SN !!


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## Erimus (Feb 20, 2012)

You & I probably heard it first on Lloyds List or Lloyds Loading List!
The confirmation pretty much as posted by RHP follows:-

Maersk Line has reached an agreement with the Oetker Group for the world’s largest container line to acquire Hamburg Süd, the world’s seventh largest container line and a leader in the North-South trades, subject to final agreement and regulatory approvals.

The deal reflects Maersk Line’s new strategy, announced on 22 September, to grow market share organically and through acquisitions, rather than through the purchase of new vessels. It also reflects a recognition by the owners and management of Hamburg Süd that “active participation in the consolidation process of the sector currently taking place would entail an even higher capital requirement” that “would make the balancing of risk within the Oetker Group business portfolio more ***bersome”, Hamburg Süd’s owners said.

The acquisition is subject to regulatory approval in key markets including China, Korea, Australia, Brazil, the United States and the EU. Maersk Line expects the regulatory process to last until the end of 2017. Until then, Hamburg Süd and Maersk Line will continue business as usual.

Hamburg Süd operates 130 container vessels with a container capacity of 625,000 TEU. It has 5,960 employees in more than 250 offices across the world, marketing its services through the Hamburg Süd, CCNI (based in Chile) and Aliança (based in Brazil) brands. In 2015, Hamburg Süd had a turnover of US$6.73 billion, of which US$6.26 billion stems from its container line activities.

With the acquisition, Maersk Line will have container capacity of around 3.8 million TEU compared with 3.1 million TEU currently, and an 18.6% global capacity share, up from 15.7% now. The combined fleet will consist of 741 container vessels with an average age of 8.7 years, compared with 9.2 years currently.

Commenting on the deal, Maersk Line and Maersk Group CEO Søren Skou said: “Today is a new milestone in Maersk Line’s history. Hamburg Süd is a very well-run and highly respected company with strong brands, dedicated employees and loyal customers. Hamburg Süd complements Maersk Line and together we can offer our customers the best of two worlds, first of all in the North-South trades.”

In the combined network, he said Hamburg Süd and Maersk Line’s customers will have access to the dedicated end-to-end services provided by Hamburg Süd in the North-South trades as well as the flexibility and reach provided in Maersk Line’s global network. Furthermore, the combined network will enable Maersk Line to develop new products with more direct port calls and shorter transit times.

“Our combined network will provide exciting opportunities to develop new products and exploit operational synergies,” said Skou. “Hamburg Süd and Maersk Line customers will benefit from more choice and better products.”

He said the acquisition was “in line with our growth strategy and will increase the volumes of both Maersk Line and APM Terminals”. But Skou said Hamburg Süd and Aliança will continue as separate brands and continue to serve customers through their local offices.

“Hamburg Süd and Aliança have competitive and attractive customer value propositions, which we want to preserve and protect,” he explained. “We wish to maintain the personal touch and engagement they offer their customers. In short, Hamburg Süd and Aliança customers will also be Hamburg Süd and Aliança customers in the future.”

Maersk parent group A.P. Møller-Mærsk said the acquisition would have no impact on A.P. Møller-Mærsk’s outlook for 2016.

Maersk Line said it expected to communicate further details following the approval of the sales and purchase agreement expected early in the second quarter of 2017. Maersk Line expects to close the transaction end 2017.

Ottmar Gast, chairman of the executive board of the Hamburg Süd Group, commented: “We are proud to join the global market leader Maersk Line. While gaining access to a superior network and systems, we will continue the Hamburg Süd brand and business model offering personalized solutions to our shippers and consignees.

“By joining forces, both Maersk and Hamburg Süd will strengthen their product portfolio and cost position to the benefit of their customers.”

August Oetker, chairman of the advisory board of Dr. August Oetker KG, the management holding company of the Oetker Group, commented: “Giving up our engagement in shipping after an 80 year-long ownership in Hamburg Süd was not an easy decision for my family. We are very confident, though, to have chosen the best of all possible partners.

“Maersk will preserve and grow Hamburg Süd and what the brand and the whole organization and a highly dedicated workforce stand for: reliable and high quality logistical services to our customers.”

He confirmed that the Oetker Group would be divesting its entire shipping division, selling Hamburg Süd with all its activities, subsidiaries and principal assets.

In a statement today, the Oetker Group said: “Following intensive talks with several interested parties, an agreement has been signed with Maersk Line, which is subject to proper due diligence and the negotiation of a Sale and Purchase Agreement as well as the notification to various regulatory authorities. It is to be assumed that the transaction will be closed in late 2017 at the earliest, once the necessary approvals have been obtained.

“Global container liner shipping has been generating losses for years in the face of rising overcapacity. Nevertheless, Hamburg Süd has performed well compared with its competitors. It has grown clearly in excess of the market and has financed the expansion of its network as well as the ship and container fleet largely from its own cash flow.

“The owners and management of Hamburg Süd must, however, recognize that active participation in the consolidation process of the sector currently taking place would entail an even higher capital requirement. This would, in addition, make the balancing of risk within the Oetker Group business portfolio more ***bersome.

“The owners of the Oetker Group have, therefore, decided to put Hamburg Süd in the hands of new owners. The global market leader Maersk is, in their view, the ideal partner to preserve and further develop the shipping company’s successful business model.”

The shipping company, with revenues of around €6.1 billion (US$6.5 billion), contributed just under 50% to the total sales of the Oetker Group in 2015. That compares with annual revenue for Maersk Line of more than $20 billion.

geoff


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## Samsette (Sep 3, 2005)

Can it be that the Dr, Oetker Pudding Pulver business also owned the Hamburg Sud? What next; Fry's Cocoa buying up Wilhelmsen-Wallenius?


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## Erimus (Feb 20, 2012)

Samsette said:


> Can it be that the Dr, Oetker Pudding Pulver business also owned the Hamburg Sud? What next; Fry's Cocoa buying up Wilhelmsen-Wallenius?


Indeed, the Pudding business is the same family,also own printing works,pharmaceuticals,frozen pizzas and dozens of other businesses.
Regret that as Frys Chocolate died with Cadbury,then within Kraft and now Mondelez...so chance of tie up with WW remote!

geoff


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## A.D.FROST (Sep 1, 2008)

Erimus said:


> Indeed, the Pudding business is the same family,also own printing works,pharmaceuticals,frozen pizzas and dozens of other businesses.
> Regret that as Frys Chocolate died with Cadbury,then within Kraft and now Mondelez...so chance of tie up with WW remote!
> 
> geoff


Don't forget Geoff Ellermans once owned a Brewery hence the CITY OF HARTEPOOL(even Maersk can't claim that)(Pint)


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## Erimus (Feb 20, 2012)

A.D.FROST said:


> Don't forget Geoff Ellermans once owned a Brewery hence the CITY OF HARTEPOOL(even Maersk can't claim that)(Pint)


#
1973-1984, five owners after that!

But Paul Svanholm their CEO used to be CEO of Tuborg & Carlsberg before joining Maersk!

geoff


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## Samsette (Sep 3, 2005)

Erimus said:


> Indeed, the Pudding business is the same family,also own printing works,pharmaceuticals,frozen pizzas and dozens of other businesses.
> Regret that as Frys Chocolate died with Cadbury,then within Kraft and now Mondelez...so chance of tie up with WW remote!geoff


Lawrence Holt would never have bought into pizzas, puddings or anything else that did not float on the briney deep.
Globalism, deregulation, diversity of holdings and free trade - Donald is going to take a close look into all this.


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## RHP (Nov 1, 2007)

The Blue Star Vesteys were butchers..... I was Edmund Vestey's PA for a while before moving to Brazil to work in the slaughter/processing side of the business, who would have thought that Edmund owned 1,500 butchers shops and livestock farms all over the world....


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## RHP (Nov 1, 2007)

On a serious note, if Hamburg Sud conclude that the 650,000 TEU / 2.9% market share position in the market is untenable then surely that applies to the other compnies around that same volume? And that's taking into account that HS had a strategic advantage being focused on the north-south trade rather than east-west.

I suspect that 600k TEU is too big to be small and too small to be big, ie stuck between economies of scale and the flexibility of being small and nimble. I know because I work for a company facing the same issue!

Rank Operator Teu Share
1	APM-Maersk 3,269,410	15.80%
2	Mediterranean Shg Co 2,823,381	13.60%
3	CMA CGM Group 2,133,736	10.30%
4	COSCO Container Lines 1,582,076 7.6%
5	Evergreen Line 994,201 4.8%
6	Hapag-Lloyd 957,788 4.6%
7	Hamburg Süd Group 605,705 2.9%
8	OOCL 575,560 2.8%
9	Yang Ming Marine 564,648 2.7%
10	UASC 538,108 2.6%
11	NYK Line 514,277 2.5%
12	MOL 500,921 2.4%
13	Hyundai M.M. 455,859 2.2%
14	PIL (Pacific Int. Line) 365,223 1.8%
15	K Line 349,677 1.7%
16	Zim 303,838 1.5%
17	Wan Hai Lines 219,988 1.1%
18	X-Press Feeders Group 153,045 0.7%
19	KMTC 126,351 0.6%
20	IRISL Group 99,867 0.5%

​Hence the recent news of the Japanese lines forming an alliance (merge??) ​NYK, MOL and K Line. Hyundai we know is also skating on very thin ice, they were expected to go before Hanjin.

I expect the main board's of Evergreen Line, Hapag-Lloyd, Hyundai and Yang Ming must be wondering how long they can stay in the business? As for Wan Hai....?


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## Rutts (Jun 28, 2005)

The sale of Hamburg Sud to Maersk was completed on 30 November

https://www.hamburgsud-line.com/liner/en/liner_services/integration_1/subpage_integration.html


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