European Union merger regulators have approved MSC Mediterranean Shipping Company for two acquisitions that aim to expand its logistics business. It is the European Commission has concluded that the acquisition of a stake in HHLA the Hamburg-based container terminal operator as well as port service provider Clasquin the French international freight forwarder and logistics firm does not cause concern about competition.

In the case of the purchase in Hamburg the Commission’s choice was affected by the competition market within Northern Europe, where several large ports operate. For Clasquin the Commission determined its impact on the market as little due to its niche location. This approval allows MSC to continue with plans to buy 49.9 per cent of HHLA shares in addition to the capital injection, and maintaining the city of Hamburg as its majority shareholder. The City of Hamburg holds 50.1 percent. MSC has also signed an agreement for management over a period of 40 years which aims to boost the volume of containers that pass through Hamburg as well as establish an German headquarters within the city.

Despite the opposition of political groups as well as Ver.di, the German trade union Ver.di that cited employment issues and concerns about foreign influence over the port, Hamburg City Parliament approved MSC’s acquisition. The approval of the EU represents the last regulatory hurdle although no date for the finalization has been set. MSC has also launched the process of tendering for more HHLA shares. Currently, MSC holds around 22 percent.

Clasquin’s acquisition Clasquin acquisition is expected to be completed on the 9th of October through MSC’s subsidiary Shipping Agencies Services, following the disposal of 42 percent of the stake to Clasquin’s top executive. The tender to purchase remaining shares is expected to be announced, which will integrate Clasquin into MSC’s wider logistics operation with a particular focus on different international markets.

Source: The Maritime Executive