Burg, CIMC merger rekindled
The on again, off again merger saga between Dutch transport equipment manufacturer Burg Industries and China International Marine Containers Group Ltd. (CIMC), the world’s largest container manufacturer, is back on now that Burg has decided to divest its tank container business.
In the summer, the two parties abandoned their original plan to merge following signals that European Commission regulators were concerned that a merger would remove competition in the area of intermodal tank containers used for chemicals, bulk liquids and other products.
Burg comprises three manufacturing divisions: road transport equipment, tanks and apparatus, and intermodal tank containers. Well-known brand names are Burg, Hobur, Burgers, Eurotank and LAG. Burg’s customers include beer brewers, food and beverage companies, chemicals and pharmaceutical manufacturers, transport companies, tank container operators, leasing companies and governments.
Under the new plan, prior to the merger Burg will sell its tank container business to Cees van der Burg, one of its two current shareholders. He will assume the position of president and chief executive officer of Burg's tank container activities, grouped in Burg Intermodal Holding BV and will not be involved in the new joint venture.
The 108 million euros transaction between Burg and CIMC will see the other Burg shareholder, Peter van der Burg, hold a 20 percent interest in the new company and take the position of president and CEO. The remaining 80 percent of the shares will be owned by CIMC.
CIMC, based in Shenzhen, China, builds marine box, tank and refrigerated containers, trailers, storage tanks, and airport support equipment. CIMC is also involved in property development and timber logging.
The arrangement is still subject to approval by Dutch, German and Chinese regulators.