Mediterranean Shipping Company (MSC) has reached an important milestone in its proposed investment in Hamburger Hafen und Logistik Aktiengesellschaft (HHLA) which operates the Port of Hamburg.
The carrier has completed the first phase of the tender offer process and is now moving into the second phase which runs until December 7, with the company reporting good progress to complete the proposed acquisition.
The supervisory board of HHLA recommended the acquisition to boost Hamburg’s competitiveness in ocean shipping and inland logistics.
MSC is seeking to acquire all HHLA’s A shares, while the City of Hamburg would continue to own the S shares and retain majority ownership. Both companies have agreed to a plan calling for significant investment in the port’s operations and the expansion of MSC’s operations in Hamburg.
“The end of the first acceptance period marks an interim step for our offer to the HHLA shareholders. We are very happy with the joint venture partners City of Hamburg and MSC already together having more than 86% of HHLA’s share capital,” said Nils Kahn, MSC Germany managing director.
“We have made very good progress in the last few weeks in order to achieve our joint growth plans with HHLA and the city to implement the act.”
Subject to Hamburg’s parliamentary approval, the City of Hamburg and MSC will provide HHLA with $482 million in additional equity capital for investments in business operations over the next few years.
In total, the city and MSC will support the investment, amounting to at least $830m between 2025 and 2028.
MSC has committed to grow its volume in Hamburg to reach one million TEUs from 2031.