Shareholders of CSAV have approved a merger with one-time rival Hapag Lloyd, creating the world’s fourth largest container carrier.

A binding agreement is expected to be signed in about the next month to month and a half, with the deal closing by the end of the year, according to Bloomberg News, following the announcement of the proposed merger being announced in January.

The combined company is expected see annual savings of $300 million with revenue of $12 billion annually.

Currently, the German Hapag Lloyd is the world’s fifth largest container carrier while the Chilean CSAV is ranked 20th.

Attempts by Hapag-Lloyd in 2008 to merge with Singapore's Neptune Orient Lines and talks in 2013 to do the same thing with fellow German shipper Hamburg Süd fell through.

The news comes as the world’s top three container carriers Denmark's A.P. Møller-Maersk, Switzerland's MSC Mediterranean Shipping and France's CMA CGM, are expected to launch an alliance around mid-year, called P3. It would control about half the market share of the world's busiest trade routes, according to the Wall Street Journal.

It received approval from U.S. regulators a few days ago but still needs the go-ahead from those in Europe and China.