Deal expected to be closed by first quarter of 2019
Hamburg Süd and The China Navigation Company (CNCo), a subsidiary of the Swire Group, has announced an agreement for CNCo to acquire the bulk shipping business in Hamburg Süd which includes Rudolf A. Oetker (RAO), Furness Withy Chartering and the bulk activities in Aliança Navegação e Logística (Aliabulk).
The bulk shipping business in Hamburg Süd operates from Hamburg, London, Melbourne and Rio de Janeiro with a chartered fleet of approximately 45 vessels in the segments: Handysize, Supramax/Ultramax and Kamsarmax/Panamax.
Whereas liner shipping activities in Hamburg Süd involve transporting cargo in containers, bulk shipping involves flexibly transporting dry goods – such as agricultural raw materials, ore and steel – in bulk carriers from port to port worldwide, depending on the customer’s requirements.
Said Dr Arnt Vespermann, CEO of Hamburg Süd:“With this step, Hamburg Süd is focusing as planned on its liner business with its two container shipping brands, Hamburg Süd and Aliança.
“As part of Maersk, the world’s largest liner shipping company, this clear focus is a logical step. At the same time, CNCo is an established and well-respected company in bulk shipping that is on a growth course in this segment and therefore constitutes a good new home for RAO, Furness Withy and Aliança Bulk.”
Closing of the agreement is expected by the end of the first quarter of 2019, subject to regulatory approval. The parties have agreed not to disclose the sales price.
The RAO Tankers business unit is not included in the sale and will remain part of the Hamburg Süd Group.
CNCo, headquartered in Singapore, is the wholly owned deep-sea ship owning and operating division of the multinational Swire Group.
CNCo employs around 2,500 employees globally and owns and operates about 135 vessels consisting mainly of dry bulk carriers and multipurpose liner vessels.
Swire Bulk, its dry bulk trading business, was established in 2012 and trades a modern fuel-efficient fleet of over 100 Handysize and Supramax/Ultramax vessels comprised of its own as well as long-term and short-term chartered tonnage.
The business is focused on being a leading provider of sustainable and innovative shipping services and being the partner of choice to its long-term charterers and industrial customers.
Commented James Woodrow, Managing Director of The China Navigation Company: “There are some very natural synergies between the businesses and we are delighted to acquire such an experienced and high-quality team and business that complements our own modern eco fleet and helps to develop our strategic expansion in to the Supramax/Ultramax segment.
“We share a strong corporate culture with a rich history spanning close to 150 years between Hamburg Sud (1871), The China Navigation Company (1872) and Furness Withy (1891) that demonstrates a shared vision and long-term commitment to the maritime industry.“
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