DJ Hapag-Lloyd's Merger Talks With UASC 'Will Bring Summer Marriage'
By Costas Paris
LONDON--Merger talks between German container-shipping operator Hapag-Lloyd AG and Dubai-based rival United Arab Shipping Co. are progressing well, and the companies will likely combine by the end of the summer, two people involved in the matter said.
"It's a win-win situation and talks are ticking along quite well," one of the people said. "Unless there is a last-minute snag, we will have a marriage by August."
Hapag-Lloyd and UASC said in April they were in preliminary talks based on valuations that would give Hapag shareholders 72% ownership of any combined firm, and holders of UASC the rest. They are currently the world's sixth- and 10th-biggest container operators in terms of capacity, and a merged entity would be the fifth-biggest.
"The combined company will be worth around $9 billion," the second person said.