Reports are saying that Germany's Hapag-Lloyd AG and Singapore's Neptune Orient Lines Limited (NOL) could merge.
The move would create an entity rivaling even A.P. Moller - Maersk A/S or the Mediterranean Shipping Company (MSC) in terms of the size of its worldwide container operations.
According to the Financial Times, Singapore's sovereign wealth fund – Temasek Holdings, and Germany's TUI AG, which specializes in travel and tourism other than commercial shipping, are currently in discussions to merge their shipping operations.
Hapag-Lloyd AG is a unit of TUI while Temasek Holdings owns 68% of NOL.
Sources have been quoted outlining one option which sees Temasek invest its 68% NOL stake in Hapag-Lloyd, a move that gives it a stake in TUI.
Given current valuations, Temasek could end up with an estimated 23% of the enlarged TUI group of companies, said one report.
Combining Hapag-Lloyd and NOL would marry the US and African routes of TUI and the Asian routes of NOL.
Temasek recently completed several high-profile global acquisitions while for TUI, reports claim that the proposed merger confirms a new strategy rejecting initial plans for a complete divestment of Hapag-Lloyd.
According to the Financial Times, TUI chief executive Michael Frenzel has come under fire for the poor returns of this new strategy which has been designed to balance the tourism and shipping business cycles.
TUI's shareholders now could be poised to decide whether to “split the operations or stick with the current strategy.”
Officials from the Singaporean parties have declined to comment while a TUI spokesman has denied that negotiations are even taking place.
Reports however, have quoted players close to the deal insisting that 'early stage talks' have been going on for several weeks and significant hurdles to the deal may be ironed out by March.
The move would create an entity rivaling even A.P. Moller - Maersk A/S or the Mediterranean Shipping Company (MSC) in terms of the size of its worldwide container operations.
According to the Financial Times, Singapore's sovereign wealth fund – Temasek Holdings, and Germany's TUI AG, which specializes in travel and tourism other than commercial shipping, are currently in discussions to merge their shipping operations.
Hapag-Lloyd AG is a unit of TUI while Temasek Holdings owns 68% of NOL.
Sources have been quoted outlining one option which sees Temasek invest its 68% NOL stake in Hapag-Lloyd, a move that gives it a stake in TUI.
Given current valuations, Temasek could end up with an estimated 23% of the enlarged TUI group of companies, said one report.
Combining Hapag-Lloyd and NOL would marry the US and African routes of TUI and the Asian routes of NOL.
Temasek recently completed several high-profile global acquisitions while for TUI, reports claim that the proposed merger confirms a new strategy rejecting initial plans for a complete divestment of Hapag-Lloyd.
According to the Financial Times, TUI chief executive Michael Frenzel has come under fire for the poor returns of this new strategy which has been designed to balance the tourism and shipping business cycles.
TUI's shareholders now could be poised to decide whether to “split the operations or stick with the current strategy.”
Officials from the Singaporean parties have declined to comment while a TUI spokesman has denied that negotiations are even taking place.
Reports however, have quoted players close to the deal insisting that 'early stage talks' have been going on for several weeks and significant hurdles to the deal may be ironed out by March.