Maersk Line’s acquisition of German container shipping line Hamburg Südamerikanische Dampfschifffahrts-Gesellschaft KG (Hamburg Süd) from the Oetker Group was closed today, the liner company informed.

The closure follows the final regulatory approval of 23 needed, which was obtained by the company on November 28 from the Korea Fair Trade Commission. All regulatory clearances were secured in less than a year, as Maersk Line announced its acquisition plans in December 2016.

“With the final approval of the acquisition, we have reached an important milestone in our strategy to become an integrated transport and logistics company delivering sustainable growth. These are truly exciting times and we are looking forward to taking the first steps forward as one company,” says Søren Skou, CEO of A.P. Moller – Maersk.

“Hamburg Süd is an outstanding brand with high quality products. By combining our two businesses we will reinforce the global positions of both companies and enhance our service offers towards customers.”

The acquisition is in line with Maersk Line’s growth strategy. Combined, the two companies will be able to realise operational synergies in the region of USD 350-400 million annually as from 2019, primarily derived from integrating and optimizing the vessel networks as well as utilizing the terminal capacity in APM Terminals.

Upon transfer of ownership, Dr. Ottmar Gast will retire as Chairman of the Executive Board of Hamburg Süd to become new Chairman of the Supervisory Board of Hamburg Süd. Søren Toft, Chief Operating Officer, A.P. Moller – Maersk, will become Board Member of the Supervisory Board of Hamburg Süd. New CEO for Hamburg Süd will be Dr. Arnt Vespermann, Maersk Line said.

“Becoming part of the world’s number one shipping company will create a lot of opportunities. We will strengthen Hamburg Süd in the global playing field and grow our market share together. At the same time, Hamburg Süd will continue serving our customers as a separate brand,” says Vespermann said.

Together, Maersk Line and Hamburg Süd will have a total container capacity of 4.15 million TEU and a 19.3% global fleet capacity share, according to Alphaliner’s assessment. 105 Hamburg Süd vessels will be integrated into the fleet of Maersk Line. The combined fleet will include a total of 773 owned and chartered vessels.

Maersk Line will acquire Hamburg Süd for EUR 3.7 billion ( USD 4.4 bn) on a cash and debt-free basis through a syndicated loan facility.