Hapag-Lloyd and CSAV complete the merger

Hapag-Lloyd and the Chilean Compania 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 Valparaiso, in 1872, is expected to result in many synergies. Annual savings of at least USD 300 million are anticipated simply as a result of network optimizations, 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 USD 12 billion, the combined entity joins the elite group of international shipping companies.

In addition to integrating CSAV's container business into Hapag-Lloyd, there are also plans to strengthen the Company by raising capital of EUR 370 million by 31 December 2014, in which CSAV will take a share of EUR 259 million and Kuhne Maritime EUR 111 million. The ownership structure of Hapag-Lloyd AG will therefore change as follows: CSAV will become Hapag-Lloyd's biggest shareholder with 34% after the cash capital increase. The other shareholders are HGV (23.2%), Kuhne Maritime (20.8%), TUI (13.9%), Signal Iduna (3.3%), HSH Nordbank (1.8%), M.M. Warburg (1.8%) and Hanse Merkur (1.1%).

CSAV, HGV and Kuhne Maritime have agreed to pool 51% of the shares in Hapag-Lloyd in order to discuss and make key decisions together in the future. Of this pool structure, CSAV owns a 50% participation, while HGV and Kuhne Maritime will own 25% each.

The main processes of integrating CSAV's container business into Hapag-Lloyd are expected to be completed by the end of the second quarter of 2015.

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