The international container shipping market is rife with speculation that yet another mega merger is in the offing. What fuels speculation is the report in Asian Wall Street Journal that Singapore’s container line Neptune Orient Lines (NOL) and Germany’s TUI AG have appointed advisers for a probable tie-up — NOL has sought the help of JP Morgan while TUI has appointed Deutsche Bank. Various interpretations are being offered by experts a bout the probable fallout of such an exercise, more so because Hapag-Loyd is the container shipping arm of TUI. What will happen ultimately is anybody’s guess but past experience suggests that virtually every major merger and acquisition has been accompanied by market disruptions causing drop in freight rates and the consequent decline in profits even as the market fundamental, particularly the cargo inducement, remains strong.
No comments:
Post a Comment