China OKs Maersk Hamburg Süd Deal
The Ministry of Commerce (MOFCOM) in China approved Danish shipping giant Maersk Line’s proposed acquisition of Hamburg Süd, reported Reuters.
Maersk Line, the world’s biggest container shipping company, will pay 3.7 billion euros ($4.3 billion) to buy German rival Hamburg Sud.
However, China has put in place restrictions on Hamburg Süd and Maersk Line’s use of vessel-sharing agreements (VSA). The ministry, in a statement, said the company could not enter a new ship sharing alliance on Far East-South America routes in the five years after the deal.
The company will withdraw some ships from certain routes such as the Far East-western coast of South America, it added.
The acquisition puts the Maersk Group in a strong position on the north-south trade between the United States and Latin America.