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Shipping container suppliers abandon $987 million deal after U.S. probe

By David Shepardson WASHINGTON (Reuters) -Global shipping container suppliers China International Marine Containers and Maersk Container Industry in a joint statement on Thursday...
Shipping container suppliers abandon $987 million deal after U.S. probe © Reuters. FILE PHOTO: Shipping containers are transported on a Maersk Line vessel through the Suez Canal in Ismailia, Egypt July 7, 2021. Picture taken July 7, 2021. REUTERS/Amr Abdallah Dalsh

By David Shepardson

WASHINGTON (Reuters) -Global shipping container suppliers China International Marine Containers and Maersk Container Industry in a joint statement on Thursday said they have abandoned a merger plan, citing significant regulatory challenges.

China International Marine Containers (CIMC) in September had agreed to buy the Danish shipping company AP Moeller - Maersk's refrigerated containers maker for $987.3 million.

The U.S. Justice Department said the deal would have combined two of the world's four suppliers of refrigerated shipping containers and further concentrated the global cold supply chain.

The Justice Department said 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."

Assistant Attorney General Jonathan Kanter, who heads the Justice Department’s antitrust division, said the acquisition could have led to "higher prices, lower quality, and less resiliency in global supply chains" and "would have cemented CIMC’s dominant position in an already consolidated industry and eliminated MCI as an innovative, independent competitor."

Germany's Federal Cartel Office said in December it also had opened an investigation into the effects the takeover of Maersk Container Industry (MCI) by CIMC could have on markets.

Maersk said it was "unfortunate" the deal would not move forward, adding it "will now assess the best structural set-up to ensure the long-term development of the business."

Founded by Maersk in 1991, MCI employs 2,300 people in China and Denmark.

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01-05-2024 10:45:17 (UTC+7)

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 EUR/USD1.0658↑ Sell
 GBP/USD1.2475↑ Sell
 USD/JPY157.91↑ Buy
 AUD/USD0.6469Neutral
 USD/CAD1.3780↑ Buy
 EUR/JPY168.32↑ Buy
 EUR/CHF0.9808Neutral
 Gold2,295.80↑ Sell
 Silver26.677↑ Sell
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 Crude Oil WTI81.14↑ Sell
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 IBEX 3510,854.40Neutral
 BASF49.155↑ Sell
 Bayer27.35↑ Sell
 Allianz266.60↑ Sell
 Adidas226.40↑ Sell
 Lufthansa6.714Neutral
 Siemens AG175.90↑ Sell
 Deutsche Bank AG15.010Neutral
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