UBS: Herbrot's acquisition of Zim brings it capacity and flexibility.

UBS analyst Cristian Nedelcu wrote that the acquisition of Zim by Hapag-Lloyd has brought a significant amount of incremental capacity to the German shipping company and may benefit its Gemini network agreement with Maersk. He said that increasing the number of services in the Gemini network will provide greater flexibility in adjusting capacity during times of downturn. "However, at first glance, in the current context of oversupply and large order volumes in the shipping industry, we believe that the incremental financial leverage from a potential acquisition is a negative factor." UBS stated that the market share of Hapag-Lloyd and Zim after the merger will be around 9.2%, with Hapag-Lloyd currently holding a market share of 7% and Zim around 2%. Hapag-Lloyd's stock price rose by 3.4%, while Zim's stock price increased by 38% in pre-market trading.