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Matson to acquire former Reef assets

HONOLULU (AP) -- Matson Inc. is buying the assets formerly owned by South Pacific shipping company Reef Shipping, the U.S. carrier said Wednesday.

Matson, based in Honolulu, said the acquisition expands its geographic reach in the South Pacific. It will continue to serve Reef's core trade routes from New Zealand and Fiji to the island nations in the South Pacific such as Samoa, Cook Islands and Majuro, which are new markets for Matson.

The company said the deal includes include four vessels and approximately 1,500 pieces of container equipment. The financial terms of the agreement were not disclosed.

"While the purchase itself is relatively small, it complements our growing network of Pacific island services," Matt Cox, Matson president and CEO, said in a statement. Matson had served the South Pacific for five decades beginning in in the 1920s.

The deal is expected to close by year-end.

Shares of Matson fell 35 cents to close at $24.59.