The merger between Hapag-Lloyd and United Arab Shipping Co (UASC) is likely to be concluded by August 2016, reports The Wall Street Journal.
Shareholders of UASC will meet in 10 days’ time to discuss the proposed merger with the Hamburg line.
The deal would see Hapag-Lloyd taking 72% of the new line with UASC holding the rest.
Once merged the company will be worth $9bn and will be the world’s fifth largest container line, reports the online news source.
The merged entity will also become part of The Alliance, which includes NYK, MOL, K Line, Hanjin Shipping and Yang Ming.
UASC is owned by the governments of Qatar, Saudi Arabia, Kuwait and the United Arab Emirates, while Compañía Sudamericana de Vapores (CSAV) owns 31.4% of Hapag-Lloyd, with the German city of Hamburg and Kuehne Maritime, holding around 20% each.
