Transport equipment manufacturers scrap merger plan
Burg Industries BV in the Netherlands and China International Marine Containers Group Ltd. (CIMC) have abandoned their agreement to merge following signals from the European Commission that it wouldn’t approve the deal.
Under the plan announced in February, CIMC would have acquired 75 percent of Burg’s shares.
Burg said that the European Commission regulators were not prepared to approve the transaction because of concerns that a merger would remove competition in the area of intermodal tank containers used for chemicals, bulk liquids and other products.
“Burg regrets this position since it believes that alternative transport modalities and entries of new manufacturers preclude the creation of a dominant position. The transaction would have created efficiencies which would have benefited customers and ultimately consumers. Moreover, the concerns of the European Commission only regard a small part of Burg’s business. Burg respects, however, the opinion of the European Commission,” Burg said in a statement.
Burg manufacturers truck trailers, tank containers and storage tanks. Shenzhen, China-based CIMC is the world’s largest manufacturer of standard ocean containers. It also builds refrigerated containers, trailers, storage tanks, and airport support equipment.