China OKs Maersk Hamburg Süd Deal

Maersk Line, the world’s biggest container shipping company, will pay 3.7 billion euros ($4.3 billion) to buy German rival Hamburg Sud.

However, China has put in place restrictions on Hamburg Süd and Maersk Line’s use of vessel-sharing agreements (VSA). The ministry, in a statement, said the company could not enter a new ship sharing alliance on Far East-South America routes in the five years after the deal.

The company will withdraw some ships from certain routes such as the Far East-western coast of South America, it added.

The acquisition puts the Maersk Group in a strong position on the north-south trade between the United States and Latin America.