EC to investigate Burg Group takeover

EC to investigate Burg Group takeover    The European Commission said Monday it will investigate the planned acquisition of the Netherlands-based Burg Group by fellow ISO tank container producer China International Marine Containers.
   The EC’s initial market investigation found that the takeover “would raise serious competition concerns in the sector of tank containers.”
   “The merger would bring together the two largest worldwide producers of standard ISO tank containers, giving them a quasi-monopolistic market position,” the EC said in a statement. “Only one small competitor is currently active in the same product market, and there are no clear signs that any new entry would be both timely and sufficient in scope to re-establish the pre-merger competitive situation. The commission will also examine the potential anticompetitive impact of the planned transaction on the neighboring markets for special tank containers (essentially, tank containers used for transportation of liquids requiring special treatment or tank containers built on demand to satisfy special logistic needs) where only Burg is currently active.”
   “The commission must ensure that this transaction will not be detrimental to customers like leasing companies and logistic operators and, ultimately, to the chemical and foodstuff industries,” said Neelie Kroes, EC competition commissioner.
   The EC will make a final decision on the deal July 28.