Hamburg Süd and The China Navigation Company have reached an agreement for CNCo to acquire Hamburg Süd’s bulk shipping business, consisting of Rudolf A. Oetker, Furness Withy Chartering and the bulk activities in Aliança Navegação e Logística.
The transaction is expected to close by the end of the first quarter of 2019.
According to Hamburg Süd, its bulk shipping business is operated from Hamburg, London, Melbourne and Rio de Janeiro, with a chartered fleet of approximately 45 vessels in the Handysize, Supra/Ultramax and Kamsarmax/Panamax segments.
“With this step, Hamburg Süd is focusing as planned on its liner business with its two container shipping brands, Hamburg Süd and Aliança,” said Arnt Vespermann, CEO of Hamburg Süd. “As part of Maersk, the world’s largest liner shipping company, this clear focus is a logical step. At the same time, CNCo is an established and well-respected company in bulk shipping that is on a growth course in this segment and therefore constitutes a good new home for RAO, Furness Withy and Aliança Bulk.”
CNCo is headquartered in Singapore and is the wholly owned deepsea shipowning and operating division of the Swire Group. Swire Bulk, its dry bulk trading business, was established in 2012 and trades a fleet of over 100 Handysize and Supra/Ultramax vessels.
“CNCo is excited to have successfully signed this acquisition,” said James Woodrow, managing director of The China Navigation Company. “There are some very natural synergies between the businesses and we are delighted to acquire such an experienced and high-quality team and business that complements our own modern eco fleet and helps to develop our strategic expansion into the Supra/Ultramax segment. We share a strong corporate culture with a rich history spanning close to 150 years between Hamburg Süd (1871), The China Navigation Company (1872) and Furness Withy (1891) that demonstrates a shared vision and long-term commitment to the maritime industry.”
The RAO Tankers business unit is not included in the sale and will remain part of the Hamburg Süd Group.