MSC Wins Approval from Hamburg Parliament for HHLA Acquisition

After a contentious fight, union opposition, and delays, the proposed deal for MSC Mediterranean Shipping Company to acquire half of the terminal operator in Hamburg has won approval. The Hamburg Parliament approved the deal today and now it only requires final approval from the EU Commission.

First announced in September 2023, the terms of the agreement call for MSC to acquire a 49 percent stake in Hamburger Hafen und Logistik (HHLA) which owns and operates three of the four container terminals and much of the port of Hamburg. Historically, the city has held 69 percent ownership.

MSC acquired shares in the financial markets reporting in December 2023 that it owned approximately 22 percent of HHLA. It will pay €233 million ($258 million) to acquire shares reaching the 49 percent level with the City continuing to have ownership control through preferred shares and an overall 51 percent stake. MSC obtains a 40-year contract for the joint management of HHLA.

The deal was promoted as a way of building the port of Hamburg and expanding as it faces growing challenges. They highlighted that the port is facing stiff competition and requires extensive investments to meet the emerging challenges including environmental regulations. Last year approximately 7.7 million containers were handled in the port while Rotterdam handled 13.5 million. The war in Ukraine added challenges for Hamburg as it was a traditional connection between eastern and western Europe.

MSC’s operations have been limited in Hamburg with the company also operating from Bremerhaven. As part of the deal, they have agreed to no layouts for five years while also growing operations in Hamburg. By 2031, MSC is committing to handling one million containers in Hamburg. It will also establish a regional office in Hamburg.

The Hamburg Parliament had planned to vote on the deal in June but it was delayed through a series of steps by opponents. Today, it proceeded with the second and final reading of the proposal and it was put to a vote. In the end, despite strong opposition, it won 75 percent approval (72 for and 33 against). 

Ver.di the trade union strongly opposed the deal citing the lack of control and the likelihood of a loss of jobs. The union recently rejected a contract proposal for dockworkers calling for renewed wage negotiations. According to media reports, hearing today’s news of the approval vote, some workers in Hamburg walked off their jobs following a call for action from Ver.di.

MSC is expanding its logistics operations including an announcement yesterday that MEDLOG had made an acquisition in the UK. The strategy calls for the Port of Hamburg to integrate into the network and expand its reach into the hinterlands providing increased multi-modal transport for commerce.