Ocean Network Express Completes Merger Approvals
By Aiswarya Lakshmi
Thursday, January 18, 2018
South Africa’s competition watchdog becomes final signatory allowing Kawasaki Kisen Kaisha (K Line), Mitsui O.S.K. Lines (MOL ), Nippon Yusen Kabushiki Kaisha (NYK ) merger, so that Joint venture (JV) can start operations on April 1.
"K Line, MOL and NYK have announced that their new joint venture company, Ocean Network Express Pte. Ltd., established in July 2017, has received all necessary merger approvals from local competition authorities in regions and countries where such approvals are required for the launch of service by the newly established joint venture company," said a press statement.
The green light makes ONE the sixth-largest ocean carrier.
As announced on July 3, 2017, the JV company had completed the approval process in all regions and countries except South Africa as of the end of June 2017.
South Africa rejected the merger last summer, citing evidence of past collusion between container shipping firms and the prospect of the merger leading to further anti-competitive behaviour.
Following continued negotiations with the competition authority in that country, the Japanese carriercompany yesterday (January 18) obtained approval with conditions requiring measures regarding competition law compliance.
The service commencement schedule for the new company remains unchanged, with operations slated to begin on April 1, 2018. It will launch its first 33 services in April, but start accepting bookings as early as February while it ties loose ends.