TUI to look at Hapag-Lloyd merger to fend off takeover

TUI to look at Hapag-Lloyd merger to fend off takeover

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The supervisory board of German shipping and tourism giant TUI AG Wednesday in Hanover gave the go-ahead to explore the possibility of merging its container shipping subsidiary Hapag-Lloyd with TUI.
   Hapag-Lloyd’s future has been unclear for a while amid shareholder unrest and calls for TUI executives to divest the liner company after poor results since the takeover of CP Ships in 2005, something that TUI Chief Executive Michael Frenzel has constantly resisted. Recent press speculation suggested merger talks were being held with APL’s parent NOL and before that A.P. Moller – Maersk was thought to be mulling a bid.
   However, the merger plan shows that TUI has no plans to sell the shipping line as such a move would make any takeover of Hapag-Lloyd less appealing as it would require the acquisition of the entire group.
   The supervisory board said that based on current scheduling, the earliest occasion on which a resolution for a merger could be adopted will be at its next meeting on March 17.