Hapag-Lloyd, UASC extend long-stop date

German ocean carrier Hapag-Lloyd and United Arab Shipping Company are shifting the long-stop date under the Business Combination Agreement (BCA) to May 31.    German ocean carrier Hapag-Lloyd and United Arab Shipping Company (UASC) are shifting the long-stop date under the Business Combination Agreement (BCA) to May 31, Hapag-Lloyd said Friday.
   “The long-stop date is the day when both merger parties could optionally withdraw from the whole transaction without giving any reasons if the closing has not happened until then. However, since neither Hapag-Lloyd nor UASC are interested in using this option, it was more a technical thing to push the date to the end of May,” Hapag-Lloyd spokesperson Rainer Horn told American Shipper. “And this new long-stop date is already including some safety time as we believe that we are actually on the final straight with our merger.”
   The two companies had originally planned on closing the transaction by March 31, but now expect closing to take place in the weeks thereafter, the carrier said.
   All merger clearances, authority approvals, banking approvals from Hapag-Lloyd’s side and substantially all banking approvals from UASC’s side have been obtained, and the transaction is not at any risk, Hapag-Lloyd said.
   UASC will consolidate with Hapag-Lloyd at the end of the closing period.
   Irrespective of the actual closing date, “THE Alliance” will commence operations April 1 as planned. In addition to the combined Hapag-Lloyd/UASC, THE Alliance will include Yang Ming, NYK, MOL and “K” Line.