Vapores, Hapag-Lloyd strike merger deal

Frankfurt

CHILEAN carrier Compania SudAmericana de Vapores on Wednesday said that it has signed a binding deal with Germany's Hapag-Lloyd to create the world's fourth-largest container shipping company.

The terms of the agreement are unchanged from those in the memorandum of understanding that the companies announced in January, including two capital increases totalling 740 million euros (S$1.28 billion). The second capital hike, for 370 million euros, would be part of Hapag-Lloyd's planned debut on the stock market. Vapores will contribute 259 million euros to the first capital increase and end up with a 34 per cent stake in Hapag-Lloyd.