Frankfurt/London – Germany’s Hapag-Lloyd is in talks to merge with United Arab Shipping Company (UASC), representing the latest move in the container market to battle a faltering global economy and too many ships. Hapag-Lloyd Hapag-Lloyd shares hit a three-month high on Thursday as it said the talks were based on its shareholders owning 72 percent of the combined business and UASC’s shareholders the rest. Global container shipping, which transports everything from iPhones to designer dresses, is suffering its worst downturn as a combination of weaker consumer demand and overcapacity have forced lines to cut costs and try to build scale. Hapag-Lloyd gave no further details of the discussions and said there is no certainty of a deal, though a successful merger would create a group with an estimated enterprise value in the region of 7 to 8 billion euros ($9 billion). Kuwait-headquartered UASC, which is owned by Gulf Arab states [...]
