Bloomberg reports that, ”Neptune Orient, which has posted losses in five of the past six years, is among a number of shipping companies exploring mergers and acquisitions amid a glut of capacity, declining demand and lower rates that could make this the industry’s worst year since 2009.”
The French company, the No. 3 container shipping company by capacity, will pay S$1.30 a share, 6.1 percent more than Neptune Orient’s closing price Friday, the two companies said in a statement Monday. Shareholders have approved the takeover, including Singapore state investment company Temasek Holdings Pte, which owns about 67 percent of Neptune Orient.
The transaction will create a combined company with full-year revenue of $22 billion and increased trade lines to compete against Maersk Line, the container-shipping division of A.P. Moeller-Maersk, and Mediterranean Shipping Co.