HMM-Hanjin Marriage on Anvil
The Korean government has said that it will consider merging ailing Hyundai Merchant Marine (HMM) and Hanjin Shipping should they successfully normalize their management, according to The Korea Times.
"Once the normalization program for the two shipping companies is wrapped up, the government will consider various plans including the merger of the companies," said Financial Services Commission (FSC) Chairman Yim Jong-yong.
He said, “The possibility of the merger is not so different from the direction of our restructuring plans for shipping companies revealed earlier. The two companies should normalize their business first by readjusting charter fees, adjusting debts with bondholders, adjusting debts with creditors and joining a shipping alliance. It means that we will review whether to merge the two companies or maintain the competitive system is better for the shipping industry only after both companies have been normalized.”
The two lines expressed an interest to pair up with other alliances, with Hanjin having been in talks with alliance members for a potential pair up.
Both carriers have been struggling with poor financial performance for some time, and HMM had recently announced that it was looking to confirm self-rescue measures from its competitors.
