US Justice Department axes CIMC & AP Moeller merger, cites antitrust law
The U.S. Justice Department is stepping in between China International Marine Containers (CIMC) and AP Moeller, Maersk’s refrigerated container maker, as the two companies prepare to join together in a $987.3 million absorption announced back in September 2021. The deal, now defunct due to the DOJ’s interference, had significant regulatory challenges to overcome and threatened the overall resiliency of the global supply chain.
The merger would’ve combined two of the only four shipping container companies in the entire world, putting 90% of the shipping container production squarely in the pockets of the Chinese-owned and controlled business entities.
Assistant Attorney General Jonathan Kanter, head of the Justice Department’s Antitrust Division, warned that if the deal had been completed, it would’ve eliminated all competition and resulted in more expensive and lower quality supply chains across the board.
Shipping a 40-foot container from Shanghai to New York now costs nearly $10,000, causing frustration among importers and talk of a market bubble.