Maersk Line has made good on its promise to grow through acquisitions as it confirmed market rumours of the acquisition of Hamburg Sud.

The Danish conglomerate has reached an agreement with the German shipping container line, which is subject to a final contract and regulatory approvals.

Soren Skou, chief executive of Maersk Line, said: “Today is a new milestone in Maersk Line’s history. I am very pleased that we have reached an agreement with the Oetker Group to acquire Hamburg Sud.

“Hamburg Sud is a very well-run and highly respected company with strong brands, dedicated employees and loyal customers.”

The German company, which operates 130 containerships with a capacity of 625,000 teu, will continue as a separate brand.

A difficult decision

August Oetker, chairman of the family-owned group that controls Hamburg Sud, said: “Giving up our engagement in shipping after an 80-year-long ownership in Hamburg Sud was not an easy decision for my family.

“We are very confident, though, to have chosen the best of all possible partners.

“Maersk will preserve and grow Hamburg Sud and what the brand and the whole organization and a highly dedicated workforce stand for: reliable and high quality logistical services to our customers.”

Maersk Line revealed plans for its growth strategy through acquisitions when it published its quarterly report in late September.

“The acquisition of Hamburg Sud is in line with our growth strategy and will increase the volumes of both Maersk Line and APM Teminals,” said Skou.

Hamburg Sud is described as a specialist in the north-south trades and complements Maersk’s global operations.

Bigger market share

With this acquisition, Maersk will boost its global market share from 15.7% to 18.6%, with a combined annual revenue of around $30bn.

Skou added: “Our combined network will provide exciting opportunities to develop new products and exploit operational synergies.

“Hamburg Sud and Maersk Line customers will benefit from more choice and better products.”

The Danish company said it expect to finalise the acquisition deal in the second quarter of 2017.