USA: China International Marine Containers (CIMC) has abandoned its intended acquisition of Maersk Container Industry A/S and Maersk Container Industry Qingdao after a US Justice Department investigation.
According to the Justice Department, the proposed transaction would have combined two of the world’s four suppliers of insulated container boxes and refrigerated shipping containers. It would also have consolidated control of over 90% of insulated container box and refrigerated shipping container production worldwide in Chinese state-owned or state-controlled entities.
Under the $987.3m deal announced last September, CIMC would have taken over MCI’s entire organisation and assets which include the refrigerated container factory in Qingdao, China, as well as its R&D and test engineering facilities in Tinglev, Denmark.
Commenting on the decision, assistant attorney general Jonathan Kanter of the Justice Department’s Antitrust Division, said: “American consumers depend on the global cold supply chain for many of our everyday essentials. CIMC’s acquisition of MCI threatened to harm this critical aspect of our economy leading to higher prices, lower quality, and less resiliency in global supply chains. It would have cemented CIMC’s dominant position in an already consolidated industry and eliminated MCI as an innovative, independent competitor.
“The deal also would have substantially increased the risk of coordination among the remaining suppliers in the marketplace, most of whom would have been aligned through common ownership and related alliances,” he added.
The Justice Department’s Antitrust Division cooperated with Bundeskartellamt, Germany’s national competition regulatory agency, cooperated during the course of their respective investigations.
Chinese buyer for Maersk refrigerated container business – 28 September 2021
DENMARK: AP Moller-Maersk has agreed to sell its refrigerated container business, Maersk Container Industry (MCI), to China International Marine Containers Ltd (CIMC). Read more…