U.K. commission puts condition on SvitzerÆs Adstream takeover
The United Kingdom's Competition Commission said Friday that SvitzerWijsmuller must sell off one of the harbor towage operations in the Port of Liverpool, if it goes ahead with the acquisition of Australias Adsteam Marine Ltd.
Global towage and salvage company SvitzerWijsmuller, part of Denmark's A.P. Moller-Maersk, has offered A$2.581 ($2) per share to Adsteam's shareholders, including the whole of the interim dividend declared by Adsteam. The total value of the takeover is about A$700 million ($541.3 million).
Liverpool is the only U.K. port where Svitzer and Adsteam provide competing towage services. Svitzer Marine Ltd., the U.K. subsidiary of SvitzerWijsmuller, operates 41 tugs and provides services in seven port areas and at six terminals in the country, while the British arm of Adsteam, Adsteam UK Ltd., provides harbor and terminal towage services in six major deepwater port areas and their adjacent waterways.
In its final report, the Competition Commission 'decided that the acquisition may be expected to result in a substantial lessening of competition for towage services in Liverpool, although it has not identified similar problems anywhere else in the U.K.'
SvitzerWijsmuller responded in a statement by saying: 'SvitzerWijsmuller welcomes these findings and is working with the U.K. Competition Commission to finalize undertakings agreeing to the sale of either of the Liverpool businesses.'
The company also said it expects to be able to come to an agreement with the Competition Commission before the end of the offer period, which is due to expire on March 16.
U.K. commission puts condition on Svitzer’s Adstream takeover
