A PYMNTS Company

EU: CMA CGM’s purchase of Neptune Orient Lines approved

By  |  May 1, 2016

The European Union on Friday approved French container-shipping giant CMA CGM’s $2.4 billion acquisition of Neptune Orient Lines Ltd. on the condition the merged company withdraw the Singapore-based shipping company from a separate alliance.

Regulators have been cautious about approving deals that might give carriers concentration of market share in various alliances they have long had with competitors. The alliances, akin to code sharing in the airline business, help individual operators save costs by sharing ships and port operations.

The European Commission, the bloc’s antitrust watchdog, said it cleared the deal on the condition that NOL leave the G6 line shipping alliance.

“Today’s decision ensures that the takeover will not lead to price increases for the many EU companies using these container shipping services,” said EU antitrust watchdog Margrethe Vestager.

Full Content: The Wall Street Journal

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.