Chinese Global Firm Abandons Merger Talks With Maersk After US Agency's Investigation - THE DAILY CRUCIBLE

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Friday, August 26, 2022

Chinese Global Firm Abandons Merger Talks With Maersk After US Agency's Investigation




The Daily Crucible | Friday, August 26, 2022

China International Marine Containers Group Co. Ltd. (CIMC)  has confirmed abandoning its intended acquisition of Maersk Container Industry A/S and Maersk Container Industry Qingdao Ltd. (collectively, MCI) after the Justice Department’s Antitrust Division’s thorough investigation. 

The American agency investigated the merger bid to protect the United States' economy and American citizens.

The proposed transaction would if it had succeeded, 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, according to a release made available to The Daily Crucible.

“American consumers depend on the global cold supply chain for many of our everyday essentials,” Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division, said.  

“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 concluded.

The Daily Crucible learnt that the Justice Department’s Antitrust Division and the German Bundeskartellamt cooperated during the course of their respective investigations into the botched merger bid.

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