EU clears Hapag-Lloyd, CSAV shipping merger

BRUSSELS (AP) — The European Union's antitrust authority says it is giving a conditional green light for the merger between shipping group Hapag-Lloyd AG of Germany and its Chilean rival Compania Sud Americana de Vapores.

The companies say the deal will create the world's fourth-largest shipping firm with some 200 vessels and an annual turnover of 9 billion euros ($11.6 billion).

The EU's executive Commission said Thursday the merger may go ahead provided CSAV withdraws from two consortia on the trade between Northern Europe and the Caribbean and South America's west coast to avoid creating a dominant market position that could lead to rising prices.

CSAV will receive a 30 percent stake in the new company. The other core shareholders will be Kuehne Maritime and the German port city of Hamburg.