Hapag-Lloyd merge with United Arab Shipping Company (UASC)

Maritime Cyprus

German container shipping line Hapag-Lloyd AG has agreed a merger deal with United Arab Shipping Company (UASC), creating a group with an estimated value of 7 to 8 billion euros(5.78-6.68 billion pound), as both seek to weather a market downturn.

Hapag-Lloyd said its supervisory board had approved the deal, which would see it take all shares in Kuwait-based UASC, majority-held by the government of Qatar. Hapag-Lloyd’s anchor shareholders and UASC shareholders still need to give consent.

An extraordinary general meeting of UASC will be held in Dubai on June 29, Hapag-Lloyd said in a statement.

Hapag-Lloyd shares were up by 3.4 percent at 18 euros at 1455 GMT, easing from an earlier high of 19.2 euros.

Container shipping has seen a wave a mergers and acquisitions, particularly in Asia, as companies try to grab a bigger share of a depressed market. The industry is suffering its worst downturn since…

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