VGroup has signed an agreement with Norddeutsche Vermögen Group for the acquisition of Germany-based container shipping company Norddeutsche Reederei.

The deal is subject to certain closing conditions such as antitrust approval and marks a major step in the consolidation of commercial and technical management of container vessels in Germany.

Norddeutsche Reederei is primarily involved in the management of 46 container vessels, representing a total capacity of 229,847 twenty-foot equivalent units (TEU).

Following the completion of the deal, the existing Norddeutsche Reederei team will continue to manage the fleet with VGroup’s technical management team from the Hamburg office.

VGroup is also expected to make an investment in Norddeutsche Reederei to establish a centre of excellence for the management of global container fleets.

The merged entity will collaborate with German chartering broker Blue Net Chartering for commercial management of ships.

As part of the deal, the fleet of 35 ships currently owned by Norddeutsche Vermögen Group will be transferred to Northern Shipping in a new standalone structure.

“The acquisition of Norddeutsche Reederei allows VGroup to strengthen its position as the global leader in marine support services.”

The structure has already been set up with the support of the financing institution and is expected to bring together the expertise of VGroup, Norddeutsche Reederei, and Blue Net Chartering to optimise the fleet’s financial performance.

VGroup CEO Ian El-Mokadem said: “The acquisition of Norddeutsche Reederei allows VGroup to strengthen its position as the global leader in marine support services.

“Norddeutsche Reederei’s highly experienced team will significantly enhance VGroup’s expertise in the management of container vessels to the highest quality level.

“With the addition of the capabilities of Norddeutsche Reederei, VGroup will strive to continue setting new standards and be a driving force in transforming the industry.”

VGroup mainly provides marine and offshore vessel management and support services with around 3,000 employees based across 60 offices worldwide.