EU approves Maersk-P&O deal Updated 11:52 a.m. ET, Fri Jul 29, 2005 The JOURNAL of COMMERCE ONLINE LONDON -- European Union regulators today approved A.P. Moller-Maersk's $2.8 billion takeover of P&O Nedlloyd (schedules). In return, Copenhagen-based Maersk has agreed to sell P&O Nedlloyd's Europe-South Africa operations and withdraw the Dutch carrier from several liner conferences and consortia. The European Commission, the EU's executive agency, said it was particularly concerned about the impact of the merger on the transport of refrigerated products from South Africa to Europe where the two merging carriers have a market share of more than 50 percent. Maersk's concessions would ensure the merger of its shipping unit, Maersk Sealand ,and P&O Nedlloyd, will not significantly impede effective competition in the European container shipping market, the Commission said. "When the number one carrier reinforces its market position by buying its third-largest competitor, we must ensure that shippers and end-consumers do not lose out. Following our investigation and the remedies offered we are satisfied this would not be the case," Charlie McCreevy, the commissioner responsible for overseeing the merger, said. The U.S. Department of Justice is expected to follow the EU's lead later Friday. P&O Nedlloyd shareholders must decide by Aug. 4 whether to sell their shares to A.P. Moller-Maersk. The company is expected to get acceptances from more than 70 percent of shareholders necessary to seal the transaction.
|