Competition authorities analyse proposed PON takeover

Part of acquisition formalities ALAN PEAT IN A most third-hand way, a Danish report has reached FTW claiming that the SA competition authority was looking into the merger between AP Moeller-Maersk and Royal P&O Nedlloyd (RPONL) – with concern expressed about the estimated market share of the two lines combined on the SA trade. It quoted a spokesman for the board saying that “the two parties’ combined market share is comparatively high, and we are closely looking into the matter”. This was carried in Schednet.com, which used a report carried by AFX, in turn quoting the Danish daily newspaper, Boresen. Investigating the possibility,
FTW could get no comment from
the competition board, and Bert Muys, MD of PONL in SA, said
he knew nothing of the issue. However, said Flemming Dalgaard, Cape-Town based MD of Maersk Sealand, this story probably stemmed from an action by the line as part of its acquisition formalities. “We have to file documents with the competition authorities - not only in SA, but all over the world - and it is to this that this article is referring.” However, Dalgaard offered no forecast of what the possible result of the authority’s enquiries would be. “I cannot comment on it as we are still in the middle of this process.” But one thing that he was adamant about was that the estimated figure of the combined forces of Maersk and PONL in SA printed in the report was wrong. “I can inform you that the combined market share (listed as 75% of the SA container traffic) is not correct.”