Bulk Distributor Jul/Aug 16 - Page 7

July/August 2016 Container Leasing Triton, TAL merger finalised M ergers among container leasing firms continue apace. In July, Triton Container International and TAL International Group announced they had completed their combination to form Triton International Limited, instantly making it the world’s largest box lessor with around five million TEU. In another deal completed in recent months, two Chinese lessors, Dong Fang and Florens, tied the knot. Both moves followed last year’s merger between Seaco and Cronos, after Cronos was acquired by Bohai Leasing, Seaco’s parent group. On the basis of combining Triton and TAL, the revenue earning assets of the new giant would be US$8.7 billion on an estimated global container market share of 25 percent. The newly formed company expects to achieve $40 million in annual cost synergies, it said, prior to commencing trading on the New York Stock Exchange. In accordance with the terms of the agreement, Triton shareholders own approximately 55 percent of the equity of the combined company and TAL shareholders own approximately 45 percent. TAL shareholders became entitled to receive one common share of Triton International Limited (TIL) for each share of TAL stock owned on the closing of the merger. Chairman and CEO Brian Sondey stated: “We are pleased to close this transformational transaction and look forward to capitalising on the significant operating and financial benefits of the combination to provide an unmatched level of service to our customers and create long-term value for our shareholders.” Both lessors have substantial fleets of standard dry box containers. But whereas Triton’s special containers were focused on open tops, flat racks and reefers, TAL also brings some 10,000 tank containers to the party. The appetite for mergers among box lessors has been largely fuelled by the sluggish performance in global container trade in recent years. Significant economies of scale can be achieved, particularly now that standard dry freight containers have become commodities. Earlier this year, Seaco reported that following the integration of Cronos, the lessor realised greater than expected synergies of over $30 million given the overlap in office locations and IT systems. BULKDISTRIBUTOR Tank test website from Exsif E Economies of scale can be achieved through container leasing operations “While shipping lines are over-boxed with capacity, exceeding current demand and leading to lower utilisation and rental rates, Seaco’s diversified fleet has helped mitigate excessive downward erosion,” the firm said. Seaco has, in fact, grown market share for tanks, reefers and specials, thereby compensating to a significant degree for the downward performance in dry boxes. Funding is now said to be in place for Seaco to pursue further mergers and acquisitions. Initially, the downturn following the financial cra 6b#6r6FW"V6r6W2FvV26rƖW2F@vW&RV'&vr66GW&VBFV6r&W2&FW"FfWVVBv2'WBF&Vv#RFRV7W7F&ƗGbFB֖&Ц6RFƖvBFRf'7BV'FW"bF2V"FR67BbWp#gBG'g&VvB6FW"fVFG2vW7BWfV66R#"( 0fW&vrC3Sv7BCÃSV"v66&FrFFPFW7BVFFb6FW"WVVB6vBV&Ɨ6VB'6r67VF7G&Ww'WfVB7V6r&6W2V6r6W2fR&VV&VV7F@F'WWrWVVB6GVF6VFVB'7F6R`Wr6FW'2Bf7F&W26FBvW&R&GV6VB#P'WB( 7FvFr6V7F( 6VV֖vǒǒ6vf6BWƖgBv&6FW"G&FPvVB6v&WGW&FFRvBFW2ࠣp6bv&GvFR2V6VBWrWFFVBFFW7@&fvV'6FRFRWr77FVvVBƗfRB2'BbvrVff'@F&fFR7W7FW'2vF7WW&"6W'f6RB6WF2f"vpW&F2FFW7Fr7V7F2FRWFFVB77FV2FW6vVBF&RW6W"g&VFǒBffW'2#Bp6V7FfGFW6n( 2FFW7FrFF&6RV7W&r&VFRFW7Fp6f&FB&fFRW76.( 26W'f6R6VG&RW&66RvvWfW"&V66W76&RFFVvF7V6f2&WVW7G2"&WV&VVG2( vR&R6fFVBF2Wr77FVBG2V6RbW6Rv&fFP6vf6B&VVfG2V6rFRfW&WW&V6Rbv&rvFW6bv&ǒ( FR67FFVBFRFW7B6FR6&R66W76VBF&VvFR6( 26FSwwrW6b6Р