MSC Secures Approval for Significant Stake in Hamburg Port Operator HHLA

Mediterranean Shipping Company (MSC), the world’s largest container shipping line, has received the final approval to acquire a 49.9% stake in Hamburger Hafen und Logistik Aktiengesellschaft (HHLA), the primary port operator in Hamburg, Germany. This approval comes after all closing conditions of the voluntary public takeover offer were fulfilled, including endorsements from Hamburg’s parliament, the European Commission, and officials in Ukraine, where HHLA operates a terminal in Odessa.

The transaction, expected to be completed before the end of 2024, will see MSC pay €16.75 per class A share to HHLA shareholders. Despite MSC’s significant stake, HHLA will remain majority-owned by the City of Hamburg, holding 50.1% of the shares.

MSC plans to significantly expand its operations in Hamburg, aiming to add an annual extra 1 million twenty-foot equivalent units (TEUs) to the port over the next seven years. The company will also establish a new German headquarters in Hafencity and increase its employee base in the city to around 700. This expansion is part of a broader strategy to enhance Hamburg’s position as a leading north-west European trading centre.

The partnership is expected to bring substantial investment to HHLA, with proceeds from the deal and a capital increase by MSC providing nearly half a billion euros for modernization and development of the port. According to Melanie Leonhard, Hamburg senator for economic affairs and innovation, MSC’s support will ensure the port continues to provide reliable services for all its customers.

MSC Chief Executive Officer Soren Toft expressed his welcome for the agreement’s approval, emphasizing the company’s commitment to supporting HHLA and the Port of Hamburg in their growth and development.