Update: 04.09.2023
German container carrier Hapag-Lloyd informed the Danish shipping website ShippingWatch that it is no longer a candidate for acquiring a stake in South Korea's liner HMM. The media's news report published today adds that Hapag-Lloyd "has been taken off the shortlist to compete for the bulk of shares."
Along with HMM, Hapag-Lloyd has been a member of "The Alliance," an association of shipping firms, since 2020. Hapag-Lloyd has recently increased the number of ships it operates on trans-Pacific routes connecting Asia with the eastern coast of the United States as well as routes connecting Asia with the Mediterranean.
Stakeholders in South Korea had earlier expressed concerns about granting more influence in the region to the German carrier if it acquires HMM.
Update: 31.08.2023
With no confirmation about Hapag-Lloyd being excluded from the race to acquire container liner HMM, the news circulated yesterday by South Korean media could be only rumours after all. A new report by the German transport newspaper DVZ cited insider sources who confirm that the German container shipping company is still part of the bidding.
Similarly, Shipping Watch learned that the carrier's representative in South Korea has not yet been informed about the possible exclusion, which could be a sign that Hapag-Lloyd is still in the race. In the meantime, the company did not comment on the news or the progress of its position in the acquisition process.
Update: 30.08.2023
Hapag-Lloyd's bid to acquire a stake in container carrier HMM has been excluded from the second round of bidding, reported Business Korea today. Observers anticipate the acquisition process now revolves around three companies, namely Dongwon, Harim, and the LX Group.
Earlier this week, the media circulated concerns regarding Hapag-Lloyd's potential acquisition of HMM. Being the only foreign bidder, experts claim Hapag-Lloyd's involvement could have a negative impact on Korea's domestic maritime industry.
In a joint statement, the Federation of Korean Maritime Industries and the Busan Port Development Association said they prefer the liner stays under the Korean flag. “We are concerned about the potential overseas outflow of invaluable national assets, including decades of accumulated expertise in maritime logistics, if HMM were sold to Hapag-Lloyd. This could also pose a serious threat to national security,” the two parties said.
Original article: 21.08.2023
According to a report by media outlet Business Korea, German carrier Hapag-Lloyd has expressed interest in the acquisition of Korea’s container liner HMM.
Citing investment banking sources, the report noted that the lead manager for HMM’s sale procedures, Samsung Securities, sent the German company an information brief to assist its decision.
“If Hapag-Lloyd acquires HMM, it believes it can expand its presence in the Asian region within the container business and rise to be among the top three in the world,” stated the report.
The South Korean government has long been preparing for the privatization of HMM and has recently appointed advisors and auditors to oversee the sale of a substantial stake in the company. Several companies have shown interest in acquiring shares in HMM, including Hyundai Motor Company, SM Group, LX Group, and POSCO Group.
The deadline for submitting bids is said to be today, 21 August, according to Splash247.
