The merger between German shipping giant Hapag-Lloyd and Chilean counterpart Compania SudAmericana de Vapores (CSAV) is step closer, with the companies entering a binding agreement, according to media reports.
The deal, tabled earlier this year, was conditional on a minimum 95 per cent of CSAV shareholders opting against a withdrawal prior to 20 April. Reuters reported shareholders exercised withdrawal rights on only 2.7 per cent of total shares before the deadline.
“This is another step in the road to completing this transaction, which we're sure will be enormously beneficial for our company and our investors,' CSAV chief executive Oscar Hasbun told Reuters.
CSAV will take a 34 per cent stake in the merged entity, up from the 30 per cent it was offered under initial consultations, following two capital increases totaling €740m. The move will create the fourth-largest container line in the world, with a shipping capacity of over 1m TEUs and a combined annual revenue of €9m, according to the Wall Street Journal.
The deal still requires the approval of the City of Hamburg’s Senate, with both companies hopeful regulatory approval will be granted by December.
