China International Marine Containers Group Co. Ltd. (CIMC) confirmed it has abandoned its intended acquisition of Maersk Container Industry A/S and Maersk Container Industry Qingdao Ltd. (collectively, MCI) after the Justice Department’s Antitrust Division’s thorough investigation.
The proposed transaction would have combined two of the world’s four suppliers of insulated container boxes and refrigerated shipping containers. It would also have consolidated control of over 90 percent of insulated container box and refrigerated shipping container production worldwide in Chinese state-owned or state-controlled entities.
“American consumers depend on the global cold supply chain for many of our everyday essentials,” said Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division. “CIMC’s acquisition of MCI threatened to harm this critical aspect of our economy leading to higher prices, lower quality, and less resiliency in global supply chains. It would have cemented CIMC’s dominant position in an already consolidated industry and eliminated MCI as an innovative, independent competitor. The deal also would have substantially increased the risk of coordination among the remaining suppliers in the marketplace, most of whom would have been aligned through common ownership and related alliances.”
The Justice Department’s Antitrust Division and the German Bundeskartellamt cooperated during the course of their respective investigations.
See the full release from the Justice Department here.
A.P. Moller - Maersk (Maersk) and China International Marine Containers (CIMC) announced the termination of the previously announced transaction whereby CIMC would acquire Maersk Container Industry (MCI), a leading manufacturer of refrigerated containers, from Maersk. The parties agreed to terminate the agreement because of significant regulatory challenges preventing the closing of the transaction.
The intended divestment was announced on Sept. 28, 2021 and was expected to close in 2022. As a part of the closing process, the transaction was subject to regulatory approvals.
“It is unfortunate that the transaction will not happen despite efforts of all parties involved. Throughout the process MCI has performed very well thanks to the dedication of all its employees. Maersk will continue to be a proud owner of MCI for the foreseeable future, and we will now assess the best structural set-up for MCI to ensure the long-term development of the business,” said Patrick Jany, CFO at A.P. Moller – Maersk.
Founded by Maersk in 1991, MCI has been a part of the company for more than 30 years. Over the years, it has transformed into a business focusing entirely on manufacturing refrigerated containers. Today, MCI employs 2,300 people in China and Denmark.