Shareholders in Chilean shipping line Cia. Sud Americana de Vapores SA (CSAV) have voted in favour of a proposed merger with Hapag-Lloyd AG, according to media reports.
Bloomberg has reported shareholders owning 84.5 per cent of CSAV’s stock approved the deal, which would see the company take a 30 per cent stake in German-based Hapag-Lloyd in exchange for its entire container shipping assets. This may increase to 34 per cent under a proposed capital increase, which CSAV has committed US$350m to already.
The move would create the fourth-largest container line in the world, with the joint venture expected to reap annual savings of around US$300m, according to Oscar Hasbun, CSAV’s chief executive officer. Hasbun said CSAV shareholders who voted against the merger would be given until 20 April to be bought out by the company. He said the company might reconsider the deal if more than 5 per cent of shareholders express a desire to follow this route.
Should the deal be accepted, Bloomberg suggests a binding agreement will be signed in the next 40 days, with the merger likely to be finalised by the end of this year.
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