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The Executive and Supervisory Boards of Hamburg terminal operator Hamburger Hafen und Logistik AG have jointly backed the Mediterranean Shipping Company S.A takeover offer
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Key commitments include additional equity capital of €450 million, maintaining neutrality and independence, securing investment plans, and protecting employees for at least five years
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The acceptance period for the offer began on October 23, and will close on November 20, subject to regulatory approvals
Hamburg terminal operator Hamburger Hafen und Logistik AG (HHLA) Executive Board and the Supervisory Board recently backed the takeover offer by the Mediterranean Shipping Company S.A. (MSC).
MSC and the City of Hamburg recently reached an agreement to run HHLA as a joint venture where MSC will own 49.9% by buying all of HHLA’s free-floating stock at €16.75 per share.
Angela Titzrath, CEO of HHLA, highlighted the positive aspects of the agreement, saying, “This gives us considerable additional resources to drive forward HHLA’s successful development into a leading European logistics company even more actively and rapidly, opening up significant development and business opportunities—for HHLA, our stakeholders and for Hamburg. We have also managed to secure important commitments for our employees.”
Titzrath said the comprehensive agreements and MSC’s increased financial commitment highlight HHLA’s appeal and its strategic approach, affirming MSC’s ongoing interest in the company’s long-term growth. She expressed confidence in reaching a formal agreement with the City of Hamburg and MSC on the remaining aspects in the near future.
HHLA generates more than half of its revenue by operating container terminals in Hamburg, Odessa, Tallinn, and Trieste, with HHLA’s three container terminals in Hamburg achieving a local market share of 75%. HHLA also generates just under 40% of its revenue with its intermodal segment, Metrans.
In the binding preliminary framework agreement following negotiations with the City of Hamburg and MSC, several key provisions have been established:
- Pending approval from the Hamburg Parliament, the City of Hamburg and MSC are set to inject €450 million (about $481 million) in additional equity capital into HHLA, which will support the company’s business operations in the coming years.
- The agreement prioritizes the impartiality and independence of HHLA’s business model, particularly concerning its intermodal subsidiary, Metrans, which guarantees that all customers will receive equal treatment when utilizing HHLA’s terminals and services throughout Europe.
- HHLA will continue to have control over investment decisions, securing the modernization of Hamburg’s container terminals and the global intermodal network with a commitment of at least €775 million (about $828 million) from 2025 to 2028.
- The agreement ensures job stability by prohibiting operational layoffs for a minimum of five years and maintains co-determination within the HHLA Group to protect employee interests.
- HHLA will maintain its focus on being a European logistics company. Its strategy emphasizes the sustainable reorganization of the container segment and the expansion of the European intermodal network, with specific attention to Metrans.
Prof Dr Rüdiger Grube, chairman of HHLA’s Supervisory Board, echoed Titzrath’s sentiment, saying, “With the agreements reached, we are securing the future viability of HHLA and its business model. As the offer price is deemed adequate following our review, the HHLA Supervisory Board and the Executive Board recommend accepting the offer from MSC.”
The offer acceptance period started on October 23 and will close on November 20 at midnight (CET), pending regulatory approvals and the approval of the Hamburg Parliament.
