MSC Mediterranean Shipping Company S.A. (MSC) and the Free and Hanseatic City of Hamburg have signed a legally binding Memorandum of Understanding addressing a strategic alliance relating Hamburger Hafen und Logistik Aktiengesellschaft (HHLA).

MSC declares its intention to commence a voluntary public takeover offer at EUR 16.75 per A-Share (57 percent over the 30-day volume weighted average price) in order to acquire all freely floating A-Shares of HHLA.

The City of Hamburg will own a 50.1 percent part in the strategic joint venture that will operate as HHLA, while MSC will eventually own a 49.9 percent stake.

Beginning in 2025 and increasing to at least 1,000,000 TEU annually starting in 2031, MSC will significantly boost its container volume at HHLA ports in Hamburg as part of the cooperation.

In addition, MSC will construct its new German headquarters in Hamburg, employing several hundred people. Additionally, MSC and the City of Hamburg concur to make a long-term investment commitment that will be prepared in accordance with the HHLA.

The cooperation aims to provide a solid and well-funded foundation for the further growth of HHLA and the whole Port of Hamburg, turning it into a focal point for MSC’s internationally integrated network of logistical chains and container services.

With this acquisition, MSC has a strategic stake in a major player in the European logistics industry. This firm has a network of container ports in Hamburg, Odessa, Tallinn, and Trieste, good hinterland links, the METRANS railway, and intermodal hubs in Central and Eastern Europe that are well-connected.

In order to achieve its goals for shoreside decarbonization, MSC has been making significant investments in expanding its range of intermodal solutions, including rail that runs from Sines (Portugal) to Trieste (Italy).

The arrangement would also allow MSC to diversify its terminal offering. MSC manages 70 terminals worldwide, including those in Rotterdam, Antwerp, and Singapore, through its subsidiary Terminal Investments Limited (TiL).

In addition to its fleet of 760 vessels, MSC is currently implementing a robust fleet modernization plan and expects to take delivery of more than 90 new buildings over the next three years, including the 24,000+ TEU Celestino Maresca class vessels that are the most fuel efficient by design.

Commenting on the signing of the agreement Soren Toft, CEO of MSC Mediterranean Shipping Company stated: “The City of Hamburg and MSC have had a close bond for decades.

“We are excited tobuild on this long-standing partnership today by integrating the City of Hamburg and Germany even closer into our global ocean freight network and diversified intermodal footprint across Europe.

“This deal not only expandsMSC’s global reach, but also unlocks the trade potential for the City of Hamburg and Germany.”

Dr Peter Tschentscher, First Mayor of the Free and Hanseatic City of Hamburg: “The strategic partnership between the City of Hamburg and one of the world’s leading shipping companies, MSC, is a milestone in the further development of our port.”

Dr Melanie Leonhard, Senator of Economy, City of Hamburg, “The Port of Hamburg is one of Europe’s largest industrial sites, where goods are not only shipped and transhipped, but also processed.

“We are committed to its development – to take this forward, we are joining forces with the world’s leading container shipping company. By leveraging MSC’s expertise in maritime logistics, we aim to drive forward the digitalization and the transformation of logistics in the Port of Hamburg, ensuring prosperity and job security.

“I am convinced that the Mediterranean Shipping Company is a most reliable and trustworthy partner for the development we envisage.”

Dr Andreas Dressel, Senator of Finance, and City of Hamburg: “Hamburg continues to retain the majority of the shares and be HHLA’s major shareholder via the holding company of the Free and Hanseatic City of Hamburg.

“At the same time, we are increasing strategic impact and steering capabilities together with MSC by running the joint-venture as a company directly governed by its two shareholders.”

The relationship is intended to last an endless amount of time, with the possibility of ending it at the latest after 40 years. According to both parties, this relationship should continue to be accessible to all current and potential partners of the Port of Hamburg, HHLA, and its terminals.

The takeover offer agreement will be written by MSC as a subsequent stage. It will take around 10 working days for the Bundesanstalt für Finanzdienstleistungsaufsicht (BaFin) to approve the takeover offer document when it is presented within the next four weeks.

The offer document will be released right away following approval (predicted for the second half of October).

During the following four-week offer period that will be followed by a mandatory two-week period investors can decide to accept the offer. The closing of the offer will be subject to regulatory approval, and approval by the Parliament of the Free and Hanseatic City of Hamburg.