Shipping joint venture gets the go-ahead with conditions
The Competition Tribunal has conditionally approved a joint venture of three international shipping companies: Nippon Yusen Kabushiki Kaisha (NYK), Mitsui OSK Lines (MOL) and Kawasaki Kisen Kaisha (KL). The three intend to merge their container liner shipping businesses. They will share ownership in the joint venture known as Ocean Network Express (ONE) and its South African subsidiary SA JV. The conditional approval comes after the Competition Commission originally prohibited a merger on the basis that the transaction would probably have strengthened co-ordination in the market for the transportation of cars, containers and bulk shipping services. Before the transaction, NYK operates its shipping company in SA through Michael Cotts Maritime, while MOL operates in the country through its wholly owned subsidiary MOL SA and MOL ACE SA. KL operates through a controlled entity, K Line Shipping SA. Activities of the firms include the provision of container liner shipping, car carrier shi...
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