Photographed by Adrian Pingstone in August 2005 and released to the public domain.
Speculation has surfaced that the world’s largest shipping company, MSC, may be expanding into the airline industry.
Reuters reports that American investment firm Castlelake has tapped MSC to join a consortium planning a takeover bid to purchase EasyJet, a London-based low-cost air carrier.
EasyJet shares are up about 15% since Castlelake said it was contemplating a takeover of the carrier last week. But, under EU ownership rules, the US firm would require a European partner.
Neither EasyJet nor MSC have commented on the reports. However, when similar claims emerged last October, the shipping company denied having any interest in purchasing the UK airline. The Swiss-based MSC already has diverse holdings in the global transportation sector with a passenger cruise lines, including a luxury line, container shipping and logistics, as well as high-speed rail.
Dan Coatsworth, head of markets at AJ Bell, told Halifax Investments that EasyJet is no stranger to takeover rumours and that MSC ownership would make sense given the conglomerate’s current portfolio.
“MSC is involved in air cargo so already has a foot in the aviation industry,” he said. “Where the two companies closer align is in serving a consumer audience. MSC has a cruise business and might take the view that EasyJet is a cheap way to expand into other parts of the consumer leisure market.”
“EasyJet is a big name in low-cost travel, and it has a fast-growing package holidays arm,” Coatsworth added. “Bolt those together with a cruise business and you’ve got the right ingredients for a bigger beast in the leisure industry.”
Air France-KLM have also expressed interest in joining the Castlelake consortium, although the company hasn’t entered any formal discussions.
Speaking to Bloomberg News at the International Air Transport Association annual general meeting in Brazil, AF-KL CEO Ben Smith said he would “absolutely” answer the call, if Castlelake approached him with a joint bid.