NMa: CIMC may acquire parts of Burg Industries
China International Marine Containers (hereinafter "CIMC") may acquire parts of Burg Industries, which relate to the production of trailers and storage and process tanks. The Board of Directors of the Netherlands Competition Authority (NMa) reached this conclusion on the basis of an investigation into the notification of the proposed acquisition by CIMC of a part of Burg Industries.
Prior to the proposed acquisition, part of Burg Industries, in which all the activities in the area of tank containers are concentrated, was hived off. This relates to the production of so-called 'standard ISO tank containers' and 'special tank containers'.
CIMC and Burg Industries previously notified the European Commission of a proposed acquisition, in terms of which CIMC would acquire Burg Industries in its entirety. At the time, the European Commission decided that an in-depth investigation was required into the proposed acquisition. The European Commission foresaw problems on the market for standard ISO tank containers and the market for specialised tank containers. During the second-phase investigation by the European Commission, the parties withdrew their notification.
In the construction which the parties have now chosen, the activities in relation to standard ISO and special tank containers have been separated and will be continued by Burg Intermodal. Research carried out by NMa has shown that the division of activities has been devised in such a way that no relationships will arise in which Burg Intermodal is dependent on CIMC and the subsidiaries which it will acquire, which might otherwise result in the emergence or strengthening of a dominant position on the markets for tank containers.
The German competition authority, the Bundeskartellamt, has also been notified of the proposed acquisition. The procedure is still in progress.