Hapag-Lloyd and the Chilean Compañía Sud Americana de Vapores (CSAV) are joining forces, by merging CSAV´s container business activities into Hapag-Lloyd, becoming the fourth-largest liner shipping company in the world. The corresponding contracts for the merger of the two companies were signed back in April in Hamburg. With approval from all the relevant global authorities all condition precedents were fulfilled.
The merger of Hapag-Lloyd AG with the container business activities of the Chilean shipping company founded in Valparaíso, in 1872, is expected to result in many synergies. Annual savings of at least US$300 million are anticipated simply as a result of network optimisations, improvements to productivity, and reductions in costs. The merged company will have around 200 vessels with a total capacity of approximately one million TEU, transporting some 7.5 million TEU every year and will set up its fourth regional headquarter in Valparaiso, Chile. With revenue of around US$12 billion, the combined entity joins the elite group of international shipping companies.
Rolf Habben Jansen, CEO of Hapag-Lloyd: “This is a big day for both companies. With Hapag-Lloyd’s strength in Asian traffic and on the North Atlantic, combined with CSAV’s strong position in Latin America, we will become the leading shipping company in this region – and thereby be able to offer our global customers an even more attractive network and wider range of products. Our ability to compete will also be significantly enhanced by closing the gap to the top three of our industry”. He continues, “Our immediate priorities now are to continue to offer service to all of our customers and to honor all the commitments both companies made, whilst we plan the upcoming integration. There will be no major changes to the way we work until the transition to the Hapag-Lloyd systems towards the end of the first quarter 2015”.