Although subject to conditions, the new purchase of Maersk Line is on track. China has requested Maersk Line doesn't extend the membership of Hamburg Süd to a VSA (Vessel Sharing Agreement) - currently active on the Far East trade route to the West Coast of South America - and that it ends the membership of Hamburg Süd in the VSA agreement on the Far East - East Coast of South America trade route, as soon as the agreement allows it.
In addition, Maersk Line must commit to not entering into VSA agreements with its main competitors within five years after the closing of the acquisition. Furthermore, for a period of three years, Maersk Line is committed to reducing the combined capacity of Hamburg Süd and Maersk Line for the shipment of refrigerated containers on the Far East - East Coast of South America trade route. It will reduce its capacity from the current 45-50% level to a 34-39% level.
Hamburg Süd will remain active in the commercial routes until the compromised changes take effect after the closing of the proposed acquisition, which is scheduled for the end of 2017.
"We are very pleased that the proposed acquisition of Hamburg Süd has now been approved in China. China is an important market for us and we firmly believe that the proposed acquisition of Hamburg Süd will improve the value proposition for local customers of both companies," stated Soren Toft, Chief Operating Officer of Maersk Line.
Maersk Line's acquisition of Hamburg Süd is only pending the regulatory approvals in the different markets. Both shipping companies will continue to operate normally until the completion of the acquisition process.
Source: MundoMaritimo