German container shipping line Hapag Lloyd AG on Tuesday said it has reached an agreement on terms and conditions of a business combination agreement with Arab peer United Arab Shipping Company (UASC).
The deal, which would involve all shares in UASC being moved to Hapag-Lloyd, was approved by the Hapag-Lloyd supervisory board, it said in a statement.
The merger still hinges on approval by both Hapag-Lloyd's anchor shareholders and the consent of UASC shareholders.
An extraordinary general meeting of UASC will be held in Dubai on June 29, Hapag Lloyd said in the statement.
Plans for the deal were unveiled in April and it received backing by UASC shareholders in June.