Deals

Hapag-Lloyd Agrees to Buy UASC as Container Carriers Consolidate

  • German company’s stock jumps the most in two months on accord
  • UASC shareholders to meet Wednesday to approve transaction
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Hapag-Lloyd AG approved a plan to acquire all shares of United Arab Shipping Co., paving the way for the second merger in two years to bolster the position of Germany’s biggest container-shipping line in an industry plagued by excess capacity.

The main investors of both companies still need to agree to commitments in a business-combination agreement to proceed with the deal, the Hamburg-based carrier said Tuesday in a statementBloomberg Terminal, without specifying a transaction value or other terms. UASC’s shareholders are scheduled to meet Wednesday in Dubai to clear the deal, the German company said. Hapag-Lloyd shares surged the most in two months.