Maersk Line’s decision to acquire the world’s seventh-biggest container company comes at the right point of the industry cycle, according to chief executive Soren Skou.
Speaking at a conference call shortly after the landmark Hamburg Sud deal was announced, Skou gave more details about Maersk’s move, focusing on synergies and timing.
Skou said: “The timing of the transaction is right from the point of view of the cycle and the state of the industry.
“For Maersk Line, we believe it is a unique opportunity because it is a company with a strong position and excellent management.”
Maersk is expected to grow its market share to 18.6% through the acquisition of Hamburg Sud’s fleet of 130 ships.
Fotios Katsoulas, analyst at Affinity Shipping, estimates that this number could rise to above 20% excluding the long idled fleet capacity.
He said: “Maersk will experience significant improvement of its positioning in the north-south trades.
“The decision has been in line with Maersk’s strategic approach to avoid ordering new ships and only expand by acquiring other competitors’ capacity.”
Price still a mystery
Skou declined to make any comments on the acquisition price and added that this would be disclosed at a later stage.
It has been suggested that Oetker Group could ask as much as $5bn, while its fleet value is around $1.4bn.
Maersk said in its announcement that Hamburg Sud would retain its brand name and Skou added the company’s headquarters would probably remain in Hamburg.
This could be part of what Skou described during the conference call as a “light-touch integration process”.
He noted that there would be “substantial synergies” thanks to a combined network and lower unit cost.
In respect of Hamburg Sud’s dry bulk operations, Skou said Maersk would make a final decision at a future date.
The German company has been active in tramp shipping since 1952 and it deploys more than 50 bulkers and product tankers.
