The acquisition, already cleared by US and EU authorities, is part of a consolidation move in the shipping industry where rates paid for freight have been tumbling.
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"Maersk Line will acquire Hamburg Süd for EUR 3.7 billion on a cash and debt-free basis," the company said in a statement, adding it would "finance the acquisition through a syndicated loan facility."
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The transaction has also been approved by Maersk Line's shareholders and the board of directors of the seller, the family group Oetker Group.
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Maersk Line said it hoped to close the transaction by the end of 2017.
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The US Department of Justice approved the proposed acquisition on March 23rd followed by the European Commission's approval on April 10th under undisclosed conditions.
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Hamburg Süd, which controls 134 ships and employs more than 6,000 people, generated 5.64 billion euros in sales in 2016, while Maersk Line generated $20.72 billion.
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Maersk estimates its global market share in container shipping should rise by 16.0 percent to 18.7 percent, with a fleet of 743 container ships.
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The two companies expect to save between $350 and $400 million in the first two years through their synergies.
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"By keeping Hamburg Süd as a separate and well-run company, we will limit the transaction and integration risks and costs while still extracting the operational synergies," CEO Søren Skou said in a statement, adding the acquisition would "create substantial value to Maersk Line already in 2019".
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The maritime sector, faced with falling shipping rates, has been forced to consolidate in recent years, leaving just three alliances to run most of the business.
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By leading a race to the largest ship size, Maersk has contributed to an overcapacity in the sector, which has badly hurt small operators.
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