Mergers and Acquisitions in Shipping

George Alexandridis and Manish Singh
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George Alexandridis: University of Reading
Manish Singh: V.Group Limited

Chapter 16 in The International Handbook of Shipping Finance, 2016, pp 371-413 from Palgrave Macmillan

Abstract: Abstract Mergers and acquisitions (M&A) have played a vital role in shaping various global industries, and the shipping industry has had a fairly active track record for a range of M&A transactions. In a sector affected by sharp and significant peaks and troughs in freight rates as well as asset values, the ability effectively to originate, cultivate and integrate acquisitions, mergers or strategic alliances offers a valuable competitive advantage. Over the past few years in particular, consolidation within the shipping industry has picked up significantly, especially among shipping services such as ship management companies, ship agencies and broking firms that are coming together to realize synergistic gains from their combined scale. In the ship-owning spectrum, although traditional, synergy-driven deals are not as frequent, structural shifts in market conditions are likely to result in M&A activity gathering more pace. The recent trend towards more capital intensive strategies, aiming to capture economies of scale and reduce costs and financial risks, as well as the constant evolution and growing diversity of the shipping finance market highlighted in this handbook, are likely to trigger further consolidation across an industry that has traditionally resisted it, calling for a contemporary, in-depth analysis of this rather under-explored area within the maritime spectrum.

Keywords: Cash Flow; Abnormal Return; Private Equity; Shipping Industry; Freight Rate (search for similar items in EconPapers)
Date: 2016
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DOI: 10.1057/978-1-137-46546-7_16

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