Norwegian Authority Objects Eimskip's Acquisition of Nor Lines
By Aiswarya Lakshmi
Monday, February 20, 2017
The Norwegian Competition Authority has today given a notice of an objection to Eimskip’s acquisition of the Norwegian shipping and logistics company Nor Lines AS.
The notice reflects the Authority's preliminary conclusion, and Eimskip has 15 business days to present counterarguments.
A final decision will be made by the Authority after another 15 business days. Eimskip is evaluating next steps with its legal advisors.
In last November, Eimskip has entered into an agreement to acquire the Norwegian shipping and logistics company Nor Lines. Nor Lines is a strategic fit in Eimskip’s core market and the overall transaction is asset-light.
The operation of Nor Lines has been challenging over the past years and the business will be restructured in order to improve the company’s services and profitability by aligning it with Eimskip’s current operations in Norway.
The acquisition will give Eimskip an opportunity to offer broader value added services to its customers. Norwegian exporters and importers will also benefit from the synergy between the liner services of the two companies.
The estimated annual turnover of Nor Lines amounts to approximately EUR 110 million and the company has about 200 employees. The acquisition is financed with cash.