facebook
twitter
rss
account
search
search
 

Talks could lead to merger of German, Chilean shipping giants

Jan. 20, 2014 at 1:56 PM   |   Comments

FRANKFURT, Germany, Jan. 20 (UPI) -- German container shipper Hapag-Lloyd and a Chilean rival expect to sign a preliminary merger deal soon, sources close to the talks told the Wall Street Journal.

The merger with Chile's Compania Sud Americana de Vapores would create the fourth-argest container shipping firm in the world with annual revenues of about $13 billion, the Journal reported Monday.

The companies are currently working on a memorandum of understanding that would bind them to good-faith negotiations that, in turn, are expected to result in a merger agreement that would close before the end of the first quarter.

"If no major disagreements emerge, we should have [a memorandum of understanding] signed within the next three weeks or so," a person familiar with the talks told the Journal.

The newspaper said the two companies are negotiating over what percentage of shares they will each hold after the deal closes and whether or not CSAV will part with its 50 ships or lease them to Hapag-Lloyd.

CSAV operates 50 ships, while Hapag-Lloyd operates 150, the newspaper said.

© 2014 United Press International, Inc. All Rights Reserved. Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Recommended UPI Stories
Featured UPI Collection
trending
2014: The Year in Music [PHOTOS]

2014: The Year in Music [PHOTOS]

Most Popular
1
Norways Kongsberg to demo missile for U.S. Navy Norways Kongsberg to demo missile for U.S. Navy
2
Pizza Hut hoping the "Skinny Slice" will mean big bucks
3
E-3 Sentry aircraft tipped for digital cockpit, avionic systems makeover E-3 Sentry aircraft tipped for digital cockpit, avionic systems makeover
4
Tony Hayward: Kurdish oil sector open for business Tony Hayward: Kurdish oil sector open for business
5
Saab producing vehicle protection system for unidentified customer Saab producing vehicle protection system for unidentified customer
Trending News
Video
x
Feedback