According to reports, the European Union’s competition regulator is expected to approve this week French container-shipping giant CMA CGM’s $2.4 billion acquisition of Singapore’s Neptune Orient Lines Ltd.
CMA CGM, the world’s third biggest container operator, said last week it was forming the Ocean Alliance, a new grouping comprising China Shipping Cosco Group, Hong Kong’s Orient Overseas Container Line and Taipei-based Evergreen Marine. Ocean Alliance will eventually make room for its newly acquired NOL, which is currently part of a different alliance called G6.
“The watchdog will give the green light for the takeover, after CMA CGM’s assurance that NOL will be pulled out of a competing shipping alliance,” this person said.
Ocean Alliance, which is itself subject to approvals by U.S., European and Chinese regulators, is set to begin operations early next year and will rival the dominance of the No. 1 Maersk Line, part of Danish giant A.P. Moeller-Maersk A/S, and No. 2 Mediterranean Shipping Co. of Switzerland, in the lucrative Asia-to-Europe ocean trade.
