HAMBURG: December 11, 2015. Hapag-Lloyd says the planned purchase by CMA CGM of Neptune Orient Lines (NOL), parent company of G6 Alliance member APL, will have no immediate effect on the G6 service through 2016.
The G6: APL, Hapag-Lloyd, Hyundai Merchant Marine, Mitsui O.S.K. Lines, Nippon Yusen Kaisha and Orient Overseas Container Line said they would "make further announcements should there be any development".
NOL/APL owner Temasek, Singapore's sovereign wealth fund, has signaled acceptance of CMA CGM's US$2.4 billion offer, subject to regulatory approval that is expected by mid-2016.
CMA CGM vice chairman Rodolphe Saadé said the acquisition would leverage the complementary strengths of both lines and reinforce the privately-held French company's position as a leader in global shipping with combined revenue of US$22 billion and 563 vessels.
"At a time when the shipping industry is facing strong headwinds, scale is more critical than ever to capitalize on synergies and capture growth opportunities wherever they arise. I firmly believe CMA CGM will enable NOL to address the industry's new challenges. We recognize the strategic importance of Singapore as a key hub for the maritime industry and we are committed to reinforcing its regional leadership," he added.
Tan Chong Lee, head Portfolio Management at Temasek added: "We are supportive of this transaction as it presents NOL with an opportunity to join a leading player with an extensive global presence and solid operational track record. We also note and welcome the commitment of CMA CGM to enhance Singapore's position as a key maritime hub and grow Singapore's container throughput volumes."
CMA CGM said it expects to retain the APL brand and strengthen its position in key routes to the U.S., intra-Asia and Japan. The combined entity will increase its global market share from 8.8 percent to 11.5 percent.
Noting the industry is facing "significant challenges with strong pressure on capacity and pricing", the company said scale provides a strategic advantage in order to deliver sustainable performances in the mid-term. CMA CGM added it plans to open a regional head office in Singapore and has committed to putting more box volume through the port.