Takeover bid - Port cooperation between Hamburg and MSC makes progress
The plans of the City of Hamburg and the shipping company MSC to restructure the port logistics company HHLA have taken a decisive step forward. Following the takeover bid by the world's largest shipping company to HHLA shareholders, both partners now hold 92.3 percent of the shares, as MSC announced in a mandatory announcement on Tuesday.
This means that the city and MSC together have "by far the majority that can be shaped", as Senator for Economic Affairs Melanie Leonhard(SPD) said after the result was announced. The senator does not expect any complications in terms of antitrust law "due to a detailed legal examination in advance". Thanks to the full two-thirds majority of the red-green coalition in the city hall, the approval of the parliament next year should also be certain.
Hamburg wants to secure the future of the port with major shipping company MSC
The Hanseatic city's cooperation with the world's largest shipping company is intended to boost Europe's third-largest seaport in the coming years, according to the Senate. In order for the port to be able to compete with its much larger rivals Rotterdam and Amsterdam, large investments are required to modernize the container terminals. This primarily involves further automation and thus faster and more favorable handling for customers. Mayor Peter Tschentscher (SPD) has often emphasized "that we also need further terminal investments in Hamburg, as is the case in Rotterdam, Antwerp and all major ports around the world".
Previously, a minority shareholding by the Chinese state-owned group Cosco in a single HHLA terminal in Hamburg had led to considerable discussion and resentment right up to the German government. In the MSC/HHLA case, however, Federal Economics Minister Robert Habeck has no concerns with regard to public safety. "I want to say that explicitly. There is a difference between a Chinese company and a European company like MSC," said the Green politician at the National Maritime Conference in Bremen in September.
MSC and the city have already agreed to strengthen HHLA's equity by a total of 450 million euros. The shipping company also wants to significantly increase its cargo volume in Hamburg from 2025 onwards. From 2031, the aim is to handle at least one million standard containers per year. When announcing the plan, MSC CEO Søren Toft said that the cooperation would turn the Hanseatic city into a hub for his company.
New Hamburg port partner is the world's largest container shipping company
The City of Hamburg's new port partner is by far the largest container shipping company in the world, accounting for almost 20 percent of global transport capacities according to data from the industry service Alphaliner, significantly more than the former market leader Maersk from Denmark. According to the company, its container arm comprises around 800 ships that call at 520 ports in 155 countries.
The company is already involved in around 70 terminals worldwide via a subsidiary, for example in Bremerhaven in a joint venture with Eurogate. MSC is privately owned by the Aponte family and also operates a significant cruise business with MSC Cruises. It was important for the city to ensure that Hamburg retained a majority stake in HHLA.
Only 7.7 percent of HHLA shares still in the hands of independent shareholders
According to MSC, 9.74 percent of HHLA shares were tendered to the shipping company by shareholders during the approximately six-week acceptance period. The bid was 16.75 euros per HHLA share. At the same time, MSC secured a further 12.21 percent of HHLA shares on the market. This is in addition to around 70.35 percent previously held by the Hanseatic City of Hamburg. In total, the city and MSC now hold 69.43 million HHLA shares. "This corresponds to a total of around 92.30 percent of the company's share capital and voting rights as of the reporting date," according to MSC's mandatory announcement.
This means that only 7.7 percent is still in the hands of other shareholders - far too little to block important company decisions with the so-called blocking minority. In addition, the two partners reached the threshold of 90 percent, an important mark because this means that remaining shareholders can be forced to transfer their shares against their will - the technical term for this is a squeeze-out. MSC has already made it clear "that a delisting could be in the best interests of HHLA", i.e. a delisting from the stock exchange.
Criticism from trade unionists and the opposition in Hamburg
Politicians from the CDU, Left Party, AfD and FDP in the Hamburg parliament have consistently criticized the deal between the Senate and MSC and called for other port players, such as the shipping company Hapag-Lloyd, to be more involved. They accused the red-green party of having offended other shipping companies and German port locations, as well as HHLA employees, with the "secret negotiations with MSC".
There are fears for jobs among employees, works councils and the trade union Verdi. Posters at demonstrations read: "No sale of city property! Our port - not your casino". HHLA employees even went on a wildcat strike in protest. The city countered the union's critics by claiming that significant promises had been made to the employees. For example, redundancies for operational reasons have been ruled out for at least five years. "It has also been set out in black and white for the employees that the existing co-determination will be retained."
MSC mandatory announcement on the final result of the takeover offer MSC announcement on the takeover offer Offer document WpÜG HHLA announcement on the takeover offer
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The takeover bid by MSC, the world's largest shipping company, has given it a 92.3% stake in HHLA, a significant step in the port logistics company's restructuring plan with Hamburg. This majority share holds by both partners ensures considerable influence, as stated by Senator Melanie Leonhard of the SPD.
The cooperation between Hamburg and MSC aims to strengthen Europe's third-largest seaport by investing heavily in modernization and automation of container terminals to compete with rival ports like Rotterdam and Amsterdam. Hamburg and Rotterdam both require substantial terminal investments to maintain their competitive edge in the shipping industry.
The involvement of the Chinese state-owned group Cosco in a single HHLA terminal caused significant resentment in the past, but the Federal Government, represented by Economics Minister Robert Habeck, has not expressed worry about public safety concerns in this MSC/HHLA case.
MSC has committed to increasing its cargo volume in Hamburg from 2025, aiming to handle at least one million standard containers annually by 2031. The city's cooperation with this global shipping giant is expected to transform Hamburg into a hub for the company.
MSC holds substantial interests in around 70 terminals worldwide, making it the world's largest container shipping company, significantly surpassing competitors like Maersk. Its cargo operations comprise around 800 ships that call at 520 ports across 155 countries.
Initially, only 7.7% of HHLA shares remain with independent shareholders, following the MSC takeover bid. The city and MSC jointly control around 92.3% of the port company's share capital and voting rights, which gives them the power to force out remaining minority shareholders if needed, a process known as a squeeze-out.
The MSC takeover bid has sparked criticism from Hamburg's opposition parties and trade unionists, who argue that the review process was secretive and compromises other shipping companies and German ports. They also fear for job security and have raised objections to the sale of city property.
Hamburg has countered these criticisms by emphasizing job security guarantees, such as a promise to avoid layoffs due to operational reasons for at least five years, and commitments to protect existing co-determination rights for employees.
The German federal government, represented by SPD politician Peter Tschentscher, supports the takeover bid, viewing it as beneficial for Germany's future in the global shipping sector. This move follows the country's recent decision to prioritize its energy transition and combat climate change.
The MSC takeover bid has made global headlines in shipping, business, and finance media outlets, as it showcases the growing influence of private shipping companies like MSC and their importance in international transportation.
Amsterdam, Antwerp, and other prominent port cities monitor this development closely, as they may potentially welcome potential partnerships or collaborations that can reinforce their competitive positioning in the future.
Source: www.stern.de
