By Christian Wienberg and also Kyunghee Park

(Bloomberg)– A.P. Moeller-Maersk A/S’s container line, which this month abandoned a method of constructing brand-new vessels and also will certainly rather attempt to expand via procurements, is targeting South Korea’s 2 greatest delivery companies, according to Jefferies International Ltd.

Hanjin Shipping Co last month declared insolvency security and alsoHyundai Merchant Marine Co remains in the center of a creditor-led debt-restructuring program. Both want a solid companion and also Maersk Line, the globe’s greatest, is possibly the only competitor with the economic muscle mass to handle a requisition, David Kerstens, Jefferies’s transportation expert in London, claimed in a meeting. Hanjin shares rose as high as 26 percent.

“Maersk, as the market leader, will definitely participate in the consolidation — they will have to,” Kerstens claimed. But “the takeover options for Maersk are fairly limited, as most container lines are already tied up in alliances or are family or government-controlled. The most likely scenario is that Maersk would take over the assets of Hyundai and Hanjin.”

Opinion: For Sale– One Shipping Fleet Seeking Very Adventurous Owner

Michael Pram Rasmussen, the chairman of Maersk, disclosed recently that the firm’s container line– long a leader in ship structure– will certainly currently seek requisitions to prevent swamping the marketplace with brand-new vessels. He decreased to talk about Hanjin Shipping and alsoHyundai Merchant A spokesperson at Hanjin and also a spokesperson at Hyundai Merchant decreased to comment.

After years of excess ability and also decreasing products prices, the container delivery sector remains in alarming demand of additional loan consolidation if it is to weather a stagnation in worldwide profession development. Liners have actually currently reacted with mergings and also developed vessel-sharing partnerships to reduce prices, yet a lot more requires to occur.

“There’s been a lot of consolidation this year and many of the container lines just behind Maersk have grown,” Kerstens claimed. “So Maersk is faced with substantially stronger competition.”

Hanjin Shipping shares got 23 percent to 1,175 won since 10 a.m. in Seoul trading, while Hyundai Merchant got as high as 3.7 percent Tuesday.

Maersk Line, which hasn’t made a big purchase in greater than a years, remains in a partnership with the globe’sNo 2, Mediterranean Shipping Co., while Hyundai Merchant remains in talk with sign up with the endeavor.

Hyundai Merchant has concerning 2 percent of the worldwide market while Hanjin Shipping had about 3 percent, concerning fifty percent of which was hired vessels.

Kerstens, and also fellow expert Rahul Kapoor at Drewry Financial Research Services Ltd., claimed Maersk would certainly be a lot more curious about purchasing Hanjin Shipping’s vessels instead of the whole insolvent firm. The South Korean company’s container ships deserve concerning $1.4 billion, according to VesselsValue.

South Korea’s federal government claimed recently it’s formulating strategies to enhance competition in the delivery sector and also to aid Hyundai Merchant transportation exports as the nation’s single flag service provider. Among prepares being taken into consideration are whether to aid the firm acquisition “affordable” vessels or to get brand-new ships, Vice Minister of Oceans and also Fisheries Yoon Hag- bachelor’s degree claimedSept 23.

Maersk Line, which as market leader manages around 15 percent of the globe’s container ability, just places 3rd in Trans-Pacific profession, where it ships 8 percent. Buying Hanjin Shipping and also Hyundai Merchant would certainly increase its market share on that particular course, Kerstens claimed.

“For Maersk it will be most interesting to buy something that complements its current network and it’s in particular the Trans-Pacific trade where Maersk’s market position is relatively weaker,” he claimed.

© 2016 Bloomberg L.P