The boss of Singapore container shipping line Neptune Orient Lines said on Thursday he did not expect a wave of mergers and acquisitions as the group pushes ahead with a possible multi-billion dollar takeover of a German rival.
"The remaining players in our industry are all very large and diverse groups in terms of their business models. Short-term earnings softness isn't likely to compel consolidation. I don't think we will see significant consolidation in the industry because of the nature of the industry," NOL Chief Executive Ron Widdows told a results briefing.
NOL, 66 percent-owned by Singapore sovereign fund Temasek, last month submitted an indicative bid for Hapag-Lloyd, the shipping arm of Germany's TUI , in a deal that would create the world's third-biggest container shipping group.
"The remaining players in our industry are all very large and diverse groups in terms of their business models. Short-term earnings softness isn't likely to compel consolidation. I don't think we will see significant consolidation in the industry because of the nature of the industry," NOL Chief Executive Ron Widdows told a results briefing.
NOL, 66 percent-owned by Singapore sovereign fund Temasek, last month submitted an indicative bid for Hapag-Lloyd, the shipping arm of Germany's TUI , in a deal that would create the world's third-biggest container shipping group.