Entry into the port of Hamburg
HHLA wrests a large concession from MSC
November 6th, 2023, 5:53 p.m
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The entry of the shipping company MSC into the port of Hamburg has caused many concerns. However, HHLA, which is affected by this, is now backing the deal. The main reason for this is an equity injection of hundreds of millions of euros and the exclusion of operational dismissals for several years.
After concessions from its future major shareholders, the management of the Hamburg port operator HHLA is now supporting the entry of the major Swiss shipping company MSC. Hamburger Hafen- und Logistik-AG (HHLA) announced that it had succeeded in getting commitments from the city of Hamburg and the Mediterranean Shipping Company (MSC), above all a 450 million euro equity injection that would flow after the takeover was completed. “This gives us significant additional resources to drive forward the successful development of HHLA into a leading European logistics company even more actively and quickly,” said CEO Angela Titzrath. Redundancies for operational reasons are excluded for at least five years.
Under these conditions, which were set out in a preliminary agreement, the Executive Board and Supervisory Board supported MSC’s offer, which had surprised HHLA in September. Shareholders are recommended to accept the offer of 16.75 euros per HHLA A share. MSC and the Free and Hanseatic City of Hamburg had already agreed in advance to divide HHLA between them.
MSC is joining with 49.9 percent, the Hanseatic city, which previously had a stake of almost 70 percent, is reducing its share to 50.1 percent. HHLA is valued at 2.6 billion euros including debts. MSC’s offer to the remaining shareholders runs until November 20th.
Verdi wants a collective agreement with HHLA
The takeover offer had raised concerns among shipping companies that MSC could claim special rights there. The largest German shipping company Hapag-Lloyd, which together with its partners accounts for more than half of the container throughput in Hamburg, had considered a counteroffer, but ultimately declined. According to HHLA, the agreement with MSC and the city also ensures equal treatment of all customers. “All customers continue to have equal access to all HHLA terminals and services across Europe.” MSC will also not persuade the board of directors into investment planning, the statement said.
The modernization of the container terminal in Hamburg, which is expected to cost 775 million euros between 2025 and 2028 alone, is thus secured. MSC and the city support the board’s strategy. However, there are still outstanding points that should be settled bindingly with the two future major shareholders in the next few weeks, explained Titzrath.
The Verdi union welcomed the agreement, but called for protection through a collective agreement. “The inclusion of these regulations in the “Business Combination Agreement” shows the will to maintain safe and good jobs for employees,” said Verdi deputy boss Christine Behle. The agreements with MSC would have a minimum duration of 40 years. “But now it is urgent a collective agreement between ver.di and HHLA which also regulates the entitlements of employees in a binding manner.” She called for improvements to co-determination on the supervisory board.