Stock shoots up
Shipping company MSC joins Hamburg-based HHLA
September 13, 2023, 11:37 a.m
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The Senate had rejected billionaire Kühne’s offer: the world’s largest container shipping company MSC wants to join the Hamburg port logistics company HHLA. This is met with incomprehension by competitor Hapag-Lloyd.
The city of Hamburg is bringing the world’s largest container shipping company MSC on board with its listed port company. As Hamburger Hafen und Logistik AG (HHLA) announced, the Mediterranean Shipping Company (MSC), based in Switzerland, has announced that it will make a takeover offer to HHLA.
“In close communication with the HHLA Supervisory Board, the Executive Board will examine and evaluate the announced offer in the best interests of the company and while safeguarding the interests of all stakeholders,” said the company HHLA with.
The city of Hamburg currently holds around 69 percent of the listed HHLA. In the future, this will be managed in a joint venture, with the city holding 50.1 percent and MSC 49.9 percent of the shares. To make this possible, MSC will make a takeover offer for all currently freely traded shares at a price of 16.75 euros per share. After the announcement, the price rose to around 17 euros, an increase of 47 percent. At the same time, MSC will significantly increase the cargo volume in Hamburg from 2025. From 2031 onwards there should be at least one million standard containers TEU per year. MSC will also move its German headquarters to Hamburg.
Hamburg’s mayor Peter Tschentscher from the SPD spoke of a groundbreaking transaction that would lead to a strategic partnership between the city and one of the world’s leading shipping companies. This could give the entire maritime economy the boost it needs in difficult times.
MSC boss Soren Toft said that with this very important and strategic cooperation, Hamburg will become a hub in the future. MSC wants to set up its German headquarters in Hafencity. Recently, billionaire Klaus-Michael Kühne sharply criticized the management of HHLA and signaled his willingness to take a larger stake in the port company. The Senate reacted coolly to this.
Hapag-Lloyd feels insulted
Germany’s largest shipping company Hapag-Lloyd is currently reacting with surprise to Hamburg’s agreement with its Swiss rival MSC to join the port operator HHLA. The traditional Hamburg company said it had taken note of HHLA’s announcement that the MSC Group would make a voluntary public takeover offer. “We assume that this will not affect our cooperation with HHLA,” a spokesman added. Internally, the shipping company said they were surprised by the offer. “This is a super-cold shower for us,” said an insider. You feel like you’ve been insulted.
Hamburg is the home port of Hapag-Lloyd, founded in 1847. The world’s fifth largest container shipping company handles its transports in the Hanseatic city via the HHLA Burchardkai terminal, the largest in the Hanseatic city. “We are now paying the terminal fees to our biggest competitor,” said the insider. “That’s quite an affront.”
Industry observers assume that the anger at Hapag-Lloyd is so great that they might even consider giving up the company headquarters on the traditional Ballindamm. “It may well be that the home shipping company is driven to Wilhelmshaven,” said an industry insider. Hapag-Lloyd acquired a stake in the Jade-Weser-Port in Wilhelmshaven last year.