Drewry: Consolidation between CMA CGM and Happag Lloyd is unlikely
CMA CGM and Hapag Lloyd: According to Simon Heaney, senior manager of Container Research at Drewry, consolidation between top-tier operators such as French long-line giant CMA CGM and its German counterpart Hapag-Lloyd is unlikely.
Heaney explained, the merger of carriers of that size is likely to be questioned by regulatory authorities amid fears of breaking the rules of fair competition.
“We have all seen the news about CMA CGM and Hapag-Lloyd, so I do not rule out the possibility, but I believe that mergers and acquisitions among first-tier operators are unlikely, in part because of competition laws. it’s still very fragmented and, from a vendor’s point of view, it needs further consolidation, but I think it will come from lower down in the hierarchical order, “Heaney said.
Reports of possible merger talks between the duo emerged earlier this month with Reuters writing that CMA CGM had conducted an exploratory approach to Hapag-Lloyd on a possible merger.
However, a spokesperson for Hapag-Lloyd said “there is no substance in these market rumors.”
Be that as it may, operators in all areas have been eager to consolidate with their peers as a way to achieve profitability in a market that struggles with winds against overcapacity.
Despite a rebound in rates and the general recovery of market fundamentals, in particular, the restoration of the balance between demand and supply, 2018 promises to be another difficult year for operators.
Retrieved from WorldMaritimeNews, Drewry
