Hapag-Lloyd parent in talks to buy CP Ships

Hapag-Lloyd parent in talks to buy CP Ships    TUI AG, parent company of German container and cruise shipping company Hapag-Lloyd, confirmed today that it is in talks to buy United Kingdom-based CP Ships.
   “The worldwide container shipping industry is in a phase of consolidation and concentration. The takeover of P&O Nedlloyd by Maersk Sealand which was cleared by the cartel authorities only recently has accelerated this process,” TUI said in statement.
   “Against this background, TUI and Hapag-Lloyd have discussions with other container shipping companies on a regular basis, including CP Ships. No decisions have been taken so far. There is no certainty as to whether these discussions will lead to alliances or transactions in the near future or later on,” TUI added.
   Hapag-Lloyd Container Line is a member of the Grand Alliance that is faced with the task of replacing P&O Nedlloyd’s vessel capacity, following its announcement that it will leave the alliance in February.
   If TUI is successful in purchasing CP Ships, a combined operation with Hapag-Lloyd would have a capacity of approximately 410,000 TEUs, which would be enough to rank in 7th place in American Shipper’s recent survey of the top 20 carriers ranked according to TEU capacity.
   In the last week of July, CP Ships was forced to admit it was considering selling-up after the Toronto Stock Exchange requested that the company make a statement following continued industry rumors. On Aug. 3, French carrier CMA CGM acknowledged its interest in acquiring CP Ships.
   China Shipping and Mediterranean Shipping Co. are also considered potential buyers of CP Ships.