EC makes Hapag-Lloyd’s TACA resignation condition of CP Ships buyout
The European Commission has cleared Hapag-Lloyd parent company TUI AG’s proposed $2.3 billion acquisition of CP Ships on the condition that Hapag-Lloyd withdraw from two Europe/North America liner conferences: the Trans-Atlantic Conference Agreement and the U.S. South Europe Conference.
“The clearance of this merger paves the way to the creation of a leading European player in the industry. The remedies ensure that the merger does not lead to anticompetitive coordination between shipping lines on the important trade lanes between Europe and North America,” said Neelie Kroes, EC competition commissioner.
TUI had to extend the offer deadline to CP Ships’ shareholders from Oct. 7 to Oct. 18 as it awaited EC clearance. Approval has already been granted in the United States and Canada.
CP Ships and TUI confirmed Wednesday that the regulatory review period in China has expired, although regulatory approvals in certain other unspecified countries in which the companies do business are still pending.
TUI said it anticipates completing the takeover later this month.
The merged operations of CP Ships and Hapag-Lloyd will join the top five ocean carriers with a fleet capacity of approximately 400,000 TEUs.
Following Hapag-Lloyd’s resignation, TACA’s membership will be reduced to six carriers: Atlantic Container Line, Mediterranean Shipping Co., Maersk Sealand, Nippon Yusen Kaisha, Orient Overseas Container Line and P&O Nedlloyd. USSEC will comprise just Maersk Sealand and its recent acquisition P&O Nedlloyd.
EC makes Hapag-Lloyd’s TACA resignation condition of CP Ships buyout
