Temasek, the sovereign wealth fund, and Germany’s Tui are in talks to merge their shipping operations in a deal that could see the Singaporean group take a stake of more than 20% in the Hanover-based travel group. A merger of Tui’s Hapag-Lloyd unit and Neptune Orient Lines, 68% owned by Temasek, would create a global force in container shipping to rival the likes of Denmark’s Maersk Line.
People close to the discussions said one option would see Temasek put its 68% stake in NOL into Hapag-Lloyd and take a share of Tui. Given current valuations, Singapore could end up with an estimated 23% of the enlarged group. Combining Hapag-Lloyd and NOL would bring together the US and African routes of the German group with the Asian routes of its Singaporean rival. A deal would mark Temasek’s latest incursion abroad. Last month, it increased its stake in UK bank Standard Chartered to 19% and in December became lead investor in a recapitalisation of Merrill Lynch, injecting $4.4bn for a 9% stake.