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.
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.