Germany's Hapag-Lloyd sold for US$6 billion

Germany’s Hapag-Lloyd has been sold for Eur 4.45 billion (US$6.03 billion) to Hamburg-based consortium Albert Ballin.

Singapore’s Neptune Orient Lines (NOL) had been one of the major bidders for the sale but pulled out of the bidding process last Friday. TUI, which owns the Hapag-Lloyd subsidiary, would take a 33 percent stake in the consortium’s bid vehicle in a deal worth Eur 700 million (US$948.29 million). "Despite an adverse environment, the price we have achieved for container shipping reflects its fair value even under normal market conditions,'' Michael Frenzel, TUI's Chief Executive was quoted as saying on FT.com. He said the decision to retain a third of Hapag-Lloyd made the price of the sale possible. Mr Frenzil will continue to be the supervisory board chairman at Hapag-Lloyd. TUI is now expected to offer a payout to shareholders, the largest of which is none other than Norway’s John Fredriksen.
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