Representatives from Wilh.Wilhelmsen ASA (WW) and Wallenius Lines AB (OW) signed the agreement with Korea's Hyundai Merchant Marine Co., Ltd. (HMM) on the acquisition of HMM's car carrier division. The terms of the agreement include long-term exclusive contracts with Hyundai Motor Company (HMC) and Kia Motors Corporation (KMC) on shipping their car exports for an initial five-year period, with provision for extensions.

The newly-established company, which will acquire HMM's car carrier division, will be incorporated in Korea, with WW and OW together holding 80% and with HMC and KMC together holding 20%.

Completion of the acquisition is conditional upon obtaining regulatory approval and financing.

President of Wallenius Lines AB, Carl Johan Hagman (36), has been appointed President & Chief Executive Officer of the newly-established company. Mr. Hagman has extensive experience in the global shipping industry and has also previously lived and worked in Korea.

Commenting on the agreement with HMM, Mr. Hagman said "This presents a unique opportunity for WW and OW to become participants in the continuing success of HMC and KMC in the global automotive industry by providing the highest quality car transportation services based on global best practices."

HMM's car carrier division is one of the leaders in the global shipping industry, and currently operates a fleet of 76 vessels dedicated to transporting cars manufactured by HMC, KMC and other major global car and Ro/Ro manufacturers to various destinations world-wide.

Mr. Sjur Galtung, Deputy Group Chief Executive of WW, also commented "This acquisition will be the largest foreign acquisition of a Korean operation and is a reflection of our faith in Korea and faith in the long term success of the Korean automotive industry. We have all witnessed the exceptional growth rates achieved by HMC and KMC and we would like to bring our global transportation resources and decades-long experience to support HMC and KMC in their goal of becoming a Global Top 5 car manufacturer."

WW and OW also own 50 per cent each in a joint venture, Wallenius Wilhelmsen Lines (WWL), which operates a combined fleet of car and Ro/Ro carriers in liner traffic and contract shipping. WWL is one of the world's largest transporters of rolling cargo, with a fleet of 60 vessels and operations in all the large and important trades.

With the acquisition of HMM's car carrier division, WW and OW with their joint holdings will be the global leaders in the transportation of cars and other rolling car cargoes.