Dominance on Europe trade motivates competitions submission DAL is one of the contenders for P&O Nedlloyd’s 30% share of SAECS, should AP Mo/ller Maersk be compelled to sell off some of its shares by the competition authorities if the merger goes through. RAY SMUTS, ALAN PEAT A CONCERNED group of South African fruit exporters has engaged a top barrister to make submission on their behalf to the European Commission’s competitions directorate over the proposed AP Mo/ller-Maersk takeover of P&O Nedlloyd. Their argument, which apparently has the backing of the Perishable Products Export Control Board (PPECB), is that Maersk Sealand/Safmarine/PONL’s 77% share of the reefer trade between South Africa and Europe would place it in a dominant position. The APM Group has already offered certain counters to ease the concerns, excluding the withdrawal of PONL from certain conferences where Maersk Sealand is not a joint member. Latest news at the start of a fresh week – no more than rumour at this stage – is that several players including Deutsche Afrika-Linien and CMA CGM are in line to buy PONL’s 30% stake in the SAECS consortium. (DAL has 16% of SAECS, Maersk Sealand 22% and Safmarine 32%). The EC ruling is expected at the end of this month (July). There is little comment at this moment from either the lines involved in the takeover or from the SA competition authorities. Flemming Dalgaard, MD of Maersk Sealand in SA, told FTW that parent company AP Mo/ller was “in the middle of the (takeover) process”. “There are things going on with the competition authorities, but I’m in no position to comment at the moment.” Meantime Thando Lubunga of the SA Competition Commission said that the authorities’ processes allow “persons to lodge objections”, and that some relating to the takeover (and its competitive implications) had already been lodged with the commission. These objections are currently with the mergers and acquisitions section. “They are currently being evaluated,” Lubunga added. Lindiwe Khumalo of the mergers and acquisitions section was unavailable for further comment on the evaluation at time of going to print.
