The container companies MCI and CIMC abandon the merger after the US investigation.
China International Marine Containers Group (CIMC) has abandoned its intention to acquire Maersk Container Industry (MCI) after an antitrust investigation by the US Department of Justice.
The proposed transaction would have combined two of the four global suppliers of isothermal container boxes and refrigerated shipping containers.
It would also have consolidated control of more than 90% of the production of isothermal container boxes and refrigerated shipping containers worldwide in Chinese or state-controlled entities, the Department of Justice said. The planned merger was announced in September last year,
“American consumers depend on the global cold supply chain for many of our everyday staples,” said Deputy Attorney General Jonathan Kanter of the Department of Justice’s Antitrust Division.
“CIMC’s acquisition of MCI threatened to damage this critical aspect of our economy leading to higher prices, lower quality and less resilience in global supply chains. It would have cemented CIMC’s dominant position in an already consolidated industry and eliminated MCI as an innovative and independent competitor,” he added.
“The agreement would also have substantially increased the risk of coordination between the remaining suppliers in the market, most of which would have been aligned through common ownership and related alliances,” commented Jonathan Kanter.
The Antitrust Division of the Department of Justice and the German Bundeskartellamt cooperated during the course of their respective investigations.
SOURCE: PORTALFRUTICOLA.COM