The planned merger between Hapag-Lloyd and United Arab Shipping Company (UASC) could be on the verge of gaining EU Antitrust approval, reported Reuters.
The planned tie-up, which would create the world’s fifth-largest carrier is one step closer to becoming a reality after sources close to the deal told Reuters that UASC had agreed to pull out of some vessel sharing agreements, seen as a key stumbling block in gaining approval.
The new alliance could save the combined company millions in costs, as vessels and routes are shared, to improve efficiency. Several other shipping lines have also recently announced plans merge or join alliances to ward off the collapse in freight rates.
The two companies had already submitted concessions to the EU on October 28, in a bid to gain approval. This latest step could be enough to push it over the line.
The EU Commission will publish its decision no later than November 23.
