German container shipping line Hapag-Lloyd has agreed a merger deal with United Arab Shipping Company (UASC), creating a group with an estimated value of USD7.7-8.9bn, as both seek to weather a market downturn. Hapag-Lloyd said its supervisory board had approved the deal, which would see it take all shares in Kuwait-based UASC, majority-held by the government of Qatar. Hapag-Lloyd's anchor shareholders and UASC shareholders still need to give consent. An extraordinary general meeting of UASC will be held in Dubai on June 29, Hapag-Lloyd said in a statement. Plans for the deal were unveiled in April. It received backing by UASC shareholders earlier this month. Hapag-Lloyd initially said talks were based on its shareholders owning 72% of the combined business. (Reuters)