Swiss container liner company MSC has begun discussions with German shipbuilder Meyer Werft regarding MSC's possible acquisition of the 80.73 per cent interest in Meyer Werft, Bloomberg reported recently.
The 80.73 per cent stake had been acquired by the German Federal Government and the Lower Saxony State Government for €400 million (US$460 million) as part of a restructuring effort in 2024.
If finalised, the acquisition will include Meyer Werft's yard facilities in Papenburg and Rostock.
The discussions are only preliminary in nature and could end without an agreement reached by both parties. There is also an opportunity for other bidders to emerge.
Prior to the 2024 government bailout, Meyer Werft was beset by financial troubles that began following the onset of the Covid-19 pandemic, when supply chain disruptions led to some ship deliveries being delayed, as well as a drop in orders for new vessels.
This forced the company to temporarily reduce its production activities, resulting in only one large and one small cruise ship being completed each year.
The situation was further impacted by inflation and rising costs in the wake of the 2022 Russian invasion of Ukraine.
According to German media, the contracts for those cruise ships under construction at the company's Papenburg facilities had already been finalised before the pandemic occurred and therefore do not provide for adjustments to account for any price increases affecting energy and raw materials.
