Large container merger paved with problems

Continuing losses at Chilean CSAV, the loss of market shares and volumes in South America, along with requirements for large capital injections and a stock listing are the key risks in Hapag-Lloyd's acquisition of the carrier, says Alphaliner.

Continuing losses at CSAV and overlapping routes on Latin America could be a tough challenge in the expected merger between German Hapag-Lloyd and the Chilean container carrier, currently set to become the 4th largest container carrier in the world with a total market share of 5.6 percent.

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