By Kyunghee Park

(Bloomberg) — Hyundai Merchant Marine Co. gained probably the most in additional than 20 years in Seoul buying and selling on optimism a restructuring plan for South Korea’s second-biggest container liner will get a lift because it seeks to affix the world’s largest transport alliance.

The firm has began talks to affix a grouping often known as 2M, which is led by AP Moeller-Maersk A/S and Mediterranean Shipping Co., it stated in an e-mailed assertion on Thursday. Shares of Hyundai Merchant superior by the each day restrict of 30 %, probably the most since October 1995, to shut at 15,400 received in Seoul.

“The announcement is raising expectations that this will clear a big obstacle and help turn things around for Hyundai Merchant,” stated Park Moo Hyun, an analyst at Hana Daetoo Securities Co. in Seoul. “But there’s still a way to go since talks just started and it remains uncertain how this will help Hyundai Merchant.”

The firm and larger rival, Hanjin Shipping Co., are amongst unprofitable liners worldwide which might be taking steps together with debt restructuring and asset gross sales to enhance their steadiness sheets as overcapacity and slowing commerce result in a protracted downturn in charges. Hanjin Shipping gained 3.9 % on the shut of buying and selling.

Rival Grouping

Joining the alliance will assist Hyundai Merchant cut back prices and enhance its competitiveness, the Seoul-based firm stated the assertion. It will even allow Maersk and Mediterranean Shipping to bolster their providers on trans-Pacific routes, stated the Korean firm, which ended talks to affix The Alliance, whose members embody Hapag-Lloyd AG and Hanjin Shipping.

The 2M alliance is positively reviewing the proposition by Hyundai Merchant, Soren Toft, chief working officer of Maersk Line, stated in an e-mailed response to a Bloomberg News. “The inclusion of Hyundai Merchant Marine in 2M would, for example, provide us with extended coverage and a stronger product in the trans-Pacific trade,” he stated, including that it’s nonetheless early days to remark additional.

© 2016 Bloomberg L.P