[131213.EN.SEA] Hapag-Lloyd-CSAV Merger Unlikely – Sahreholders Too Different: Alphaliner

HOPE for merger between Chile's CSAV and Germany's Hapag-Lloyd is unlikely to be realised, because the two groups of shareholders are too different and there is no consensus on strategic direction, says maritime analyst Alphaliner.

This will make a merger deal difficult to forge, said the Paris-based research house. "CSAV's value as a merger candidate is also impaired as its shipping operations are chronically unprofitable and it has been steadily losing market share, despite scaling down its global coverage since 2011 to focus on Latin America," said Alphaliner.

"The discussions between CSAV and Hapag-Lloyd are therefore more likely to lead to further cooperation on joint services instead of an outright merger, especially on the Latin America sector as both carriers seek to stop their declining market shares from falling further.

CSAV and Hapag-Lloyd have confirmed that they are in discussions on "a possible business combination or any other form of association", after news of a November meeting in Miami on a potential merger was reported by Germany's Die Welt newspaper last week.

Although the German press suggests that both carriers have complementary liner networks, the likelihood that the discussions will lead to a merger is low, said Alphaliner.

For Hapag-Lloyd, the discussions with CSAV follow the failed merger talks with Hamburg Sud, which started in late 2012 but were called off in March 2013 after the shareholders of both companies failed to agree on terms. But the case for a merger between Hapag-Lloyd and Hamburg Sud was clearly positive and publicly acknowledged.

Source : SN-TR, 10.12.13.