UASC seeks approval for possible ‘business combination’ with Hapag-Lloyd

Shareholders in United Arab Shipping Company (UASC) will vote soon to approve a “business combination” agreement with Germany-based container line Hapag-Lloyd.

The nature of such a combination has not yet been disclosed, but it could potentially include a merger. On April 21, the two lines said their merger discussions are based on a relative valuation of the two businesses at 72% for Hapag-Lloyd and 28% for UASC.

UASC said today that talks are ongoing and no binding agreement has yet been reached. Its shareholders will vote to approve or reject the proposal at an extraordinary general meeting scheduled for June 2.

“The potential transaction is subject to the approval of the regulatory authorities, the relevant bodies at Hapag-Lloyd and other stakeholders. Its implementation is also subject to the approval of Hapag-Lloyd’s shareholders,” UASC noted in a release today.