Equities

Shares in Hapag-Lloyd surge after Reuters reveals CMA CGM merger approach

Shares in Hapag-Lloyd surge after Reuters reveals CMA CGM merger approach

Shares in German container shipping line Hapag-Lloyd jumped over 10 percent after Reuters exclusively reported that bigger French rival CMA CGM had made a merger approach, as players in the sector hunt for tie-ups to beat depressed conditions. The global container shipping sector continues to struggle with an oversupply of vessels that has plunged it into an almost decade-long slump, its worst on record, forcing some companies out of business and others to combine forces to benefit from economies of scale.