HAMBURG SUD TO ACQUIRE TAIWANESE LINE KIEN HUNG

HAMBURG SUD TO ACQUIRE TAIWANESE LINE KIEN HUNG    The Hamburg Sud shipping group, the parent company of Columbus Lines, Crowley American Transport, Alianca, Ellerman and others, has returned to the acquisition trail by entering into an initial agreement to acquire the liner business of Taiwan-based Kien Hung.
   “The management of Kien Hung and Hamburg Sued advise that they have concluded an agreement in principle for the takeover of the Kien Hung liner business activities by Hamburg Sued,” the German shipping group said. The intention of both companies is to conclude final negotiations and the handover of the business at the end of March.
   Kien Hung has operated container services from Asia for 20 years. It currently trades in the intra-Asia, Asia/South Africa, Asia/South America and Africa/South America markets.
   Hamburg Sued said that Kien Hung’s management has “realized that the fluctuation and volatility of the business are difficult to sustain for a smaller operator.”
   The acquisition will allow the Hamburg Sued group to add a direct service between the Far East and the East Coast of South America.
   Hamburg Sud said that the financial proceeds from the sale will enable Kien Hung to settle all liabilities resulting from the business up to the point of takeover.
   Last November, Hamburg Sud acquired the deep sea liner shipping arm of London-based Andrew Weir Shipping, including its north Europe/Mediterranean activities.