The boards of Maersk Line and Oetker Group have given their approval for the sale and purchase agreement for Maersk’s acquisition of Hamburg Süd.

Under the agreement, Maersk will acquire Hamburg Süd for €3.7 billion (US$4 billion) on a cash and debt-free basis.

“Today, we have taken a decisive step towards the shared future of Maersk Line and Hamburg Süd,” said Søren Skou, CEO of Maersk Line and A.P. Moller - Maersk. “Our due diligence confirmed that Hamburg Süd is a well-run company with strong and highly respected brands. We have confirmed the anticipated synergies and we are convinced that our plan to maximize customer retention is the right path forward. I have no doubt that together we can develop new competitive products to the benefit of our customers and exploit operational synergies. The acquisition is cementing our position as the largest and leading carrier in container shipping, and it will provide great opportunities for the employees of both companies.”

Hamburg Süd will remain a separate company.

“We see the acquisition of Hamburg Süd by Maersk Line as a natural development and we are convinced that Hamburg Süd will thrive under continued own management and maintain not only the services offered to its customers, but also provide its employees a fantastic opportunity to continue shaping the future of the industry as a leading service provider,” said Ottmar Gast, chairman of the executive board of Hamburg Süd.

The transaction is still subject to regulatory approvals. The US Department of Justice approved the acquisition on March 23, 2017, while the EU Commission approved it, subject to conditions, on April 10, 2017.

Maersk Line and the Oetker Group, which owns Hamburg Süd, signed the sale and purchase agreement on March 14, 2017.

The transaction is expected to be complete by the end of 2017, according to Maersk.