Maersk acquires Hamburg Süd

Maersk Line, the world’s largest shipping company, will buy its smaller rival Hamburg Süd, which has a strong presence in Latin America, as part of its plans to strengthen its global operations.

The agreement, announced by the A.P. Moller-Maersk, is the group’s first total acquisition in more than a decade and highlights a consolidation drive in container shipping, which has faced low prices for freight and oversupply

Maersk is one of the biggest shipping lines in the world.

Maersk is one of the biggest shipping lines in the world.

Hamburg Süd, the seventh largest container shipping line in the world, has been an operator with a strong presence in Latin America since it was founded in 1871.

With the acquisition, Maersk Line will increase its container capacity and market share to 18.6%.

The decision is framed by Maersk’s new chief executive, Soren Skou, to focus on transportation and logistics and spin off the company’s energy operations. Maersk shares rose more than 5 percent.

“This will give us a very strong platform in Latin America,” said Skou, who noted that there will be “significant” cost-benefits from the combination of the two companies’ networks.

Skou declined to reveal the value of the deal, but said it would be a cash-only transaction and that Maersk does not need to sell other assets to proceed with the purchase.

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