Strategic partnership for HHLA’s further development close to conclusion
Hamburger Hafen und Logistik Aktiengesellschaft (HHLA AG) will continue to be majority-owned by the City of Hamburg and will be further developed together with the new major shareholder Mediterranean Shipping Company, the world’s largest container shipping company. Following the approval of the Hamburg parliament and the EU Commission, all closing conditions have now been met with the approval of the Ukrainian merger control authority.
As previously announced, the transaction will be completed by the end of 2024. MSC Mediterranean Shipping Company has acquired shares from shareholders through a tender offer and on the open market and will also acquire part of the shares previously held by Hamburg. The Free and Hanseatic City of Hamburg will hold around 69 per cent of the listed shares in HHLA AG, up from 50.1 per cent. As with Hamburg Airport, the company will be managed under municipal control, but with the expertise of a private sector partner.
Dr Melanie Leonhard, Senator for Economics and Innovation, said: ‘Our port is an important location for international logistics in Germany and Europe. HHLA will continue to provide reliable services for all customers of the Port of Hamburg. However, in order to continue to fulfil its functions for Hamburg and its hinterland, we need to further develop and modernise the port. With its expertise in maritime logistics, Mediterranean Shipping Company will be a strategic partner for HHLA in the necessary further development. After extensive consultation and review, all authorities and institutions involved have now determined that there are no legal concerns and that the transaction can be implemented as agreed. ‘
Dr Andreas Dressel, Senator for Finance: ‘Everything has been thoroughly examined, discussed and weighed up. All commitments will be honoured: The City of Hamburg will retain its majority shareholding in HHLA through our group holding company, HGV. Key agreements have been contractually agreed, including employee co-determination. The proceeds from the transaction and a capital increase by MSC will enable substantial investments of almost half a billion euros in the modernisation and future viability of HHLA, without us having to use additional taxpayers’ money. The partnership must and will now prove itself in practice over the next few years. In the interest of the Port of Hamburg, we should all respect the democratically made decision and wish the partnership every success in terms of value creation and jobs. ‘
Soren Toft, CEO of MSC Mediterranean Shipping Company, said: ‘ We are delighted that the transaction is now close to a successful conclusion. Together with the City of Hamburg as majority shareholder, we will support HHLA and the Port of Hamburg to return to a growth path. As part of our long-standing partnership, we will further strengthen our presence in Hamburg and provide HHLA with additional equity to invest in the modernisation of its infrastructure. ‘
On 13 September, Hamburg and MSC announced a strategic partnership for the further development of HHLA AG. The aim of the partnership is to create a strong basis for the sustainable further development of HHLA. The Port of Hamburg will become an important hub in MSC’s global shipping and intermodal network, strengthening its position as a leading North-West European trade hub. As part of the agreement, MSC will significantly increase its cargo throughput at HHLA’s terminals in Hamburg from 2025. From 2031, MSC will handle a minimum volume of 1,000,000 TEUs in Hamburg. Even before the transaction, the shipping line had brought additional liner services to Hamburg. MSC will also locate its new German headquarters for several hundred employees in Hamburg and invest in HHLA.
The conditions for completion included merger control clearance of the transaction by the European Commission and the relevant authorities in Georgia, Tunisia and Ukraine, the latter due to the terminal operated by HHLA in Odessa. In addition, subsidy control approval had to be obtained from the European Commission and foreign trade approval from the competent authorities in Italy, Slovenia, Romania and Denmark.
Further steps to implement the strategic partnership will not be taken until the transaction has been completed.
Original article
Image source: hafen-hamburg.de