TUI forced to extend deadline for CP Ships offer
A delay in obtaining regulatory approval from the European Union has forced Hapag-Lloyd parent company TUI AG to extend its $2.3 billion offer period for CP Ships to Oct. 18.
Approval has been granted in the United States and Canada but “regulatory review periods have not expired yet under competition legislation in the EU and certain other countries in which the companies carry on business,” TUI and CP Ships said in a joint statement.
It is thought that the EU is concerned by the amount of capacity the merged carrier would control in the transatlantic trade, and may stipulate Hapag-Lloyd’s withdrawal from the Trans-Atlantic Conference Agreement.
Hannover-based TUI’s original offer period was the close of business Oct. 7. CP Ships’ share price closed Friday at $21.30 on the New York stock exchange, just below that of TUI’s $21.50-per-share offer.
TUI said it still expects to complete the takeover this month. The buyout will propel Hapag-Lloyd into the top five of ocean carriers, with a fleet capacity of approximately 400,000 TEUs.
TUI forced to extend deadline for CP Ships offer
