The Korea Herald reports that Hyundai Merchant Marine (HMM) and Hyundai Motor have come to an agreement on the terms of their long-term auto-shipping contract. According to HMM sources quoted in the newspaper, the agreement is ‘likely to help HMM close a takeover deal for its auto shipping fleet with Scandinavian corporation Wallennius Wilhelmsen within this month’.
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The report says that HMM and Hyundai Motor have agreed in principle to change the current one-year shipping contract to a minimum of five years.
The Korea Herald says that the agreement on contract terms will play a positive role in HMM’s takeover deal with Wallenius Willhelmsen by decreasing the European corporation’s burden and making HMM more attractive.
Wallenius Willhelmsen, the world’s largest transportation and logistics company, has offered $1.5 billion for HMM on condition it make its annual Hyundai Motor contract long-term.
HMM, the world’s second largest auto carrier operator behind Wallenius Lines AB, handles 72 vessels, of which around 70 percent are used for Hyundai Motor logistics.
