German transportation company Hapag-Lloyd and Chilean Compañía Sud Americana de Vapores (CSAV) have completed their merging process to create the world’s fourth-largest liner shipping company.
Under the new arrangement, container business activities will be integrated with Hapag-Lloyd according to a contract signed in April this year.
The new company will own around 200 vessels with a total capacity of around one million TEU, is expected to transport around 7.5 million TEUs a year, and has an estimated revenue of around $12m.
The entity will establish its fourth regional headquarter in Valparaiso, Chile.
Hapag-Lloyd CEO Rolf Habben Jansen said: "With Hapag-Lloyd’s strength in Asian traffic and on the North Atlantic, combined with CSAV’s strong position in Latin America, we will become the leading shipping company in this region, and thereby be able to offer our global customers an even more attractive network and wider range of products.
"Our ability to compete will also be significantly enhanced by closing the gap to the top three of our industry."
In addition to this merging process, the new company is expected to raise its capital up to €370m by 31 December.
CSAV will contribute €259m to the merged company and Kühne Maritime will provide €111m. As a result, CSAV will be the biggest shareholder of Hapag-Lloyd with 34% stake, while other shareholders will be HGV (23.2%), Kühne Maritime (20.8%), TUI (13.9%), Signal Iduna (3.3%), HSH Nordbank (1.8%), MM Warburg (1.8%) and Hanse Merkur (1.1%).
Merging processes are expected to be completed by the end of second quarter 2015.