Hanover, Germany-based TUI said it would buy CP Ships shares for $21.50 apiece in cash next Tuesday. TUI, which owns the Hapag-Lloyd container shipper, said it expects to amalgamate CP by year-end.
Michael Frenzel, CEO of TUI, said, "By successfully acquiring CP Ships, we will transform our shipping division into a global player and at the same time establish our group on a second, profitable base."
CP Ships CEO Ray Miles added, "We are delighted to achieve this excellent outcome for our shareholders following our Board's strong recommendation of the TUI offer."CP was halted Wednesday at $21.49.