By the cabinet resolution of October 26, 2022, the German government approved the acquisition of a minority stake in HHLA Container Terminal Tollerort (CTT) by the Chinese company COSCO Shipping Ports Limited (CSPL), subject to conditions.
The conditions include, in particular, a limitation of the share of voting rights to 24.99 percent. According to a press release from the German Federal Ministry for Economic Affairs and Climate Action (BMWK), the acquirers will also be "prohibited from otherwise acquiring an effective interest of control of HHLA CTT that goes beyond the influence conveyed by a share of voting rights below 25 percent.” The parties have not yet received the concrete text of the decision.
The decision was preceded by an investment review by the German government lasting 13 months, as is required for the acquisition of shares by companies from non-EU countries.
Originally, the contracting parties had agreed on a 35 percent minority shareholding by CSPL in the Hamburg-based operating company Container Terminal Tollerort GmbH. The corresponding contract had been signed by both parties on September 21, 2021.
Angela Titzrath, Chairwoman of HHLA's Executive Board: “We appreciate that a solution has been found in objective and constructive talks with the Federal Government. Our long-standing Chinese partner COSCO Shipping Ports Limited can acquire a minority share of less than 25 percent in the operating company of Container Terminal Tollerort (CTT) GmbH in Hamburg, subject to the conditions imposed by the Federal Government. We will negotiate a corresponding adjustment of the agreement with CSPL in the near future."
"Following the necessary investment review, as required for the acquisition of shares by companies from non-EU countries, we now have a result that strengthens HHLA's future viability and secures jobs in the Port of Hamburg. We want to continue to successfully develop the business relationship with COSCO that has existed for 40 years."
"Neither CTT, nor HHLA, nor the Port of Hamburg will be sold to China. HHLA will remain an independent, listed company with the Free and Hanseatic City of Hamburg as its most important shareholder."
"With CSPL's investment, CTT will become a preferred hub for Asian traffic. HHLA retains sole control over all major decisions. COSCO will not receive any exclusive rights to CTT - the terminal will remain open to container volumes from all customers. CSPL also does not gain access to strategic know-how, and IT and sales data remain the sole responsibility of HHLA. German law will continue to apply in all matters."
"The cooperation between HHLA and COSCO creates no one-sided dependencies. Quite the opposite: it strengthens supply chains, secures jobs and promotes value creation in Germany. Smoothly functioning logistics are a basic requirement for global trade flows and prosperity."
For more information:
Julia Hartmann
Hamburger Hafen und Logistik Aktiengesellschaft
Bei St. Annen 1
20457 Hamburg, Germany
Phone +49 (0)40 3088-3397
hhla.de