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Tuesday, 20 December 2016

Exclusive: Financing hitches could delay Hapag Lloyd, UASC shipping tie-up - sources | Reuters

Exclusive: Financing hitches could delay Hapag Lloyd, UASC shipping tie-up - sources | Reuters:
"A merger of German container shipping line Hapag-Lloyd (HLAG.DE) and United Arab Shipping Company (UASC) is likely to take months to complete, partly due to financing issues blamed on a deep industry downturn, sources familiar with the deal say.

Hapag-Lloyd signed a binding agreement with UASC in July to form the world's fifth-largest line, valued at about 7 to 8 billion euros ($7.2-$8.3 billion), by the end of 2016.

But three sources told Reuters that timeline is being held up, partly because some banks want to pull out of loans, particularly to UASC, due to the sector crisis. One source said the sum totaled at least $500 million and could be as much as $900 million."

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