Singapore: Competition watchdog okays Japanese shipping lines’ JV

The Competition Commission of Singapore has cleared the proposed joint venture between Nippon Yusen Kabushiki Kaisha and Mitsui O.S.K. Lines and Kawasaki Kisen Kaisha. The parties jointly applied for a decision by CCS on whether the creation of the JV would infringe the prohibition in the Competition Act against anti-competitive mergers.

Under the JV, the Parties will merge their container liner shipping business, and their container terminal services businesses outside Japan. The only overlapping service of the Parties that would affect Singapore is the provision of container liner shipping services. The Parties also provide logistics services, bulk shipping, car transport, and liquid transport, through their respective subsidiaries. However, such services will continue to be conducted by the Parties separately and independently from each other and the JV.

In examining the impact of the JV on the global supply of container liner shipping services for intra-Asia trade routes, and for trades involving the East Asia region (which includes Singapore), as both origin and destination with various other regions around the world such as Europe and North America, CCS conducted a public consultation and sought feedback from vessel operating common carriers, non-vessel operating common carriers, and beneficial cargo owners.

After reviewing the parties’ submissions and the feedback received, CCS concluded that the creation of the JV, if carried into effect, will not infringe the prohibition in the Act against anti-competitive mergers.

Full Content: Seatrade Maritime News

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