Maersk will now assess MCI’s structure
China International Marine Containers Group Co. Ltd. (CIMC) has abandoned its intended acquisition of Maersk Container Industry (MCI) after the US Justice Department’s Antitrust Division’s 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% of insulated container box and refrigerated shipping container production worldwide in Chinese state-owned or state-controlled entities.
Assistant Attorney General Jonathan Kanter of the Justice Department’s Antitrust Division, said: “American consumers depend on the global cold supply chain for many of our everyday essentials.
“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.”
He continued: “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 intended divestment was announced in September 2021 and was expected to close in 2022.
Patrick Jany, chief financial officer at Maersk, said: “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.”
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.
In a statement, CIMC said that the company would continue to focus on the development of its cold chain business to broaden its revenue stream.
