Hapag-Lloyd and UASC today pushed through further consolidation in the liner shipping industry as the pair finally completed their merger.
The UASC brand will be gone by the end of October when the integration will be complete. The merged entity will have a value of about $8bn, according to one market analyst.
A Hapag-Lloyd spokesperson told The Loadstar: “One of the biggest benefits will be cost savings: cost-cutting behaviour can be copied, but true synergies can only be achieved through M&A activity.
“By acquiring UASC we will have the youngest and largest, on average, fleet in the world. And the younger and larger your fleet is, the cheaper the cost per unit.
“It will also greatly diversify our product portfolio.”
The lines expect to see annual synergies of about $435m, with a significant portion realised next year and the full amount achieved in 2019. Hapag-Lloyd also said it would not be necessary to make any sizeable investments in new buildings in the next few years.
Full Content: The Loadstar
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Chamber of Commerce Sues to Overturn FTC Non-Compete Ban
Apr 24, 2024 by
CPI
FTC Chief Warns of Healthcare Price Fixing Risks Amid Tech Advancements
Apr 24, 2024 by
CPI
Amazon’s Investment in Anthropic Faces Antitrust Scrutiny
Apr 24, 2024 by
CPI
Italian Antitrust Authority Fines Amazon €10 Million for Unfair Trade Practices
Apr 24, 2024 by
CPI
Tuta Mail Raises Alarm Over Google Search Ranking Plunge Amidst DMA Rollout
Apr 24, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI