The giant shipping line – MSC has given an extension of its share purchase offer to the HHLA (Hamburger Hafen und Logistik AG) shareholders’ date up to 7th December. MSC is entering a joint venture with the City of Hamburg whereby the former holds 49.9 percent while the latter owns 50.1 percent.
Ownership Milestones
MSC together with the city of Hamburg breaks 80% by diluting the remaining shareholders’ effect. Its purpose is to attain at least 90% of control, which would allow for the compulsory acquisition of shares in HHLA and finalizing consolidation of ownership.
Strategic Implications for MSC
Through acquiring HHLA, MSC would gain a terminal operator which handles some 75 per cent of Hamburg’s container flow. Apart from that, MSC will also be able to access an established intermodal network covering central and eastern Europe which will make this a groundbreaking move in the context of MSC’s overland subsidiary, Medlog.
Competitor Ambitions Quashed
Klaus Michael Kuehne’s aspiration to own shares in HHLA, coinciding with their position in Hapag-Lloyd, has challenges due to the rise in MSC ownership. Kuehne’s possible futile attempts to control the strategic direction of HHLA are suggested by this enlarged bid.
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Source: THE LOADSTAR
