CMA CGM has been given the green light from the European Commission to acquire Neptune Orient Lines (NOL) for US$2.4 billion on the condition that NOL leaves the G6 shipping alliance, which is a rival to CMA CGM, according to Reuters.
Margrethe Vestager, Competition Commissioner in the EU, said: “Container line shipping plays a central role in global trade, so competition in this sector is essential for businesses and consumers in the EU.”
It was previously reported by PTI that a transaction for the American President Lines (APL) subsidiary NOL had been unanimously approved by the NOL board.
This followed news that CMA CGM had secured funding commitments from banks to fund the acquisition of NOL.
Lines are currently reshuffling in a bid to obtain market dominance. The most recent example is the OCEAN alliance, which is now said to be the biggest alliance by market share.
Shipping lines such as Hanjin Shipping and Hyundai Merchant Marine, as well as Hapag Lloyd are looking to merge in order to remain competitive.