China International Marine Containers Group Co. Ltd. (CIMC) confirmed today that it has abandoned its intended acquisition of Maersk Container Industry A/S and Maersk Container Industry Qingdao Ltd for~$987 million (collectively, MCI) after a Justice Department Antitrust Division’s meticulous investigation conducted under the Biden Administration. The German Bundeskartellamt, aka Federal Cartel Office, cooperated with DOJ during the course of their respective investigations. The Bundeskartellamt said last December it had opened an investigation into the effects the takeover of Maersk Container Industry (MCI)* by CIMC could have on markets.
The acquisition would have combined two of the four suppliers of insulated container boxes and refrigerated shipping containers in the world thereby increasing anti-consumer consolidation in the global supply chain. It would also have combined control of more than 90% of insulated container box and refrigerated shipping container production worldwide in Chinese state-owned or state-controlled entities. China International Marine Containers and Maersk Container Industry in a joint statement that they have discarded a merger plan because of significant regulatory challenges. Patrick Jany CFO at A.P. Moller – Maersk was cited fof MCI.
It’s the latest example of the effective use of Industrial Antitrust Policy promoting widespread and long-term consumer and business benefits that virtually all Republicans renounce in favor of policies that only benefit the wealthy, with accompanying tax-payer financed handouts, checks, favorable tax policy and other aspects of a Republican welfare state run solely for the rich. (AutoInformed on: Canadian Industrial Policy Actively, Successfully Pursuing EV Climate and Economic Benefits with New Mercedes, VW MOUs)
“American consumers depend on the global cold supply chain for many of our everyday essentials,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “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.”
Maersk Container Industry (MCI)*
A.P. Moller – Maersk is an integrated container logistics company working to connect and simplify its customers’ supply chains. It claims to bethe global leader in shipping services. The company operates in 130 countries and employs ~95,000 people.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn.
He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe.
Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap.
AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks.
Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.
DOJ Thwarts Chinese Takeover of Shipping Containers
The acquisition would have combined two of the four suppliers of insulated container boxes and refrigerated shipping containers in the world thereby increasing anti-consumer consolidation in the global supply chain. It would also have combined control of more than 90% of insulated container box and refrigerated shipping container production worldwide in Chinese state-owned or state-controlled entities. China International Marine Containers and Maersk Container Industry in a joint statement that they have discarded a merger plan because of significant regulatory challenges. Patrick Jany CFO at A.P. Moller – Maersk was cited fof MCI.
It’s the latest example of the effective use of Industrial Antitrust Policy promoting widespread and long-term consumer and business benefits that virtually all Republicans renounce in favor of policies that only benefit the wealthy, with accompanying tax-payer financed handouts, checks, favorable tax policy and other aspects of a Republican welfare state run solely for the rich. (AutoInformed on: Canadian Industrial Policy Actively, Successfully Pursuing EV Climate and Economic Benefits with New Mercedes, VW MOUs)
“American consumers depend on the global cold supply chain for many of our everyday essentials,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “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.”
Maersk Container Industry (MCI)*
A.P. Moller – Maersk is an integrated container logistics company working to connect and simplify its customers’ supply chains. It claims to bethe global leader in shipping services. The company operates in 130 countries and employs ~95,000 people.
About Ken Zino
Ken Zino, editor and publisher of AutoInformed, is a versatile auto industry participant with global experience spanning decades in print and broadcast journalism, as well as social media. He has automobile testing, marketing, public relations and communications experience. He is past president of The International Motor Press Assn, the Detroit Press Club, founding member and first President of the Automotive Press Assn. He is a member of APA, IMPA and the Midwest Automotive Press Assn. He also brings an historical perspective while citing their contemporary relevance of the work of legendary auto writers such as Ken Purdy, Jim Dunne or Jerry Flint, or writers such as Red Smith, Mark Twain, Thomas Jefferson – all to bring perspective to a chaotic automotive universe. Above all, decades after he first drove a car, Zino still revels in the sound of the exhaust as the throttle is blipped during a downshift and the driver’s rush that occurs when the entry, apex and exit points of a turn are smoothly and swiftly crossed. It’s the beginning of a perfect lap. AutoInformed has an editorial philosophy that loves transportation machines of all kinds while promoting critical thinking about the future use of cars and trucks. Zino builds AutoInformed from his background in automotive journalism starting at Hearst Publishing in New York City on Motor and MotorTech Magazines and car testing where he reviewed hundreds of vehicles in his decade-long stint as the Detroit Bureau Chief of Road & Track magazine. Zino has also worked in Europe, and Asia – now the largest automotive market in the world with China at its center.