Hamburg Sud-Hapag Lloyd merger talks stymied over control and layoffs


GERMANY's leading ocean carriers, Hamburg Sud and Hapag Lloyd are still at loggerheads in current merger talks over which one will run the combined shipping line, reports London's Containerisation International.

Several well-placed sources said Hamburg Sud will pull out if Hapag Lloyd ends up on top. "If they do not get a majority shareholding, they will just dump it," said one member of Hamburg's inner circle.

Another senior industry figure told Lloyd's List that an agreement may have already been reached on the point, with Hamburg Sud ready to move into Hapag-Lloyd's headquarters.

Disagreement over which side should have the majority interest ended talks earlier merger talks in 1997. Hamburg Sud is smaller, but has no debt while Hapag-Lloyd owes EUR1.8 billion (US$2.4 billion). Another problem is layoffs, which will affect one more than the other.
Together, they would create a carrier that ranked fourth behind Maersk Line, Mediterranean Shipping Co (MSC) and CMA CGM. Merger talks got underway in December and there has been little official word during the due diligence period.



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