RAY SMUTS THE EUROPEAN Commission has cleared, in terms of the EU Merger Regulation, the proposed acquisition by AP Moller-Maersk of Royal P&O Nedlloyd, conditional upon the divestiture of PONL’s business on the trade between Europe and South Africa and its withdrawal from several conferences and consortia. The Brussels-based commission says it has concluded that the transaction will not significantly impede effective competition in the European Economic Area (EEA) or any part of it. Internal Market Commission Charlie McCreevy, responsible for the merger, says: “Most of the world’s trade is carried by sea. When the number one carrier reinforces its market position by buying its third largest competitor, we must ensure shippers and end-consumers do not lose out. Following our investigation and the remedies offered, we are satisfied this is not the case.” The EU commission’s extended market investigation focused on the shipping trade lanes to and from Europe to determine whether the parties’ market shares, with the links created by their participation in various conferences and consortia with their competitors, would result in anti-competitive effects whereby markets could be shared and prices increased, to the detriment of shippers and final consumers. Another area of concern was trade between Europe and southern Africa, particularly the transport of refrigerated goods in reefer containers, where the parties’ market share is higher than 50%. Maersk offered to divest PONL’s business dealings with the transport of cargo from South Africa to Europe. Its cash bid of US$2.8 billion for PONL, formally tabled last month, is dependent on just that, among others.
