- The European Commission has greenlit CMA CGM’s acquisition of Bolloré Logistics.
- Concerns arose due to vertical links between CMA CGM’s container shipping.
- The Commission must assess mergers exceeding certain thresholds.
The European Commission has greenlit CMA CGM’s acquisition of Bolloré Logistics, subject to conditions.
Both companies are international transport and logistics firms, with CMA CGM focusing on container liner shipping and port terminal services, and Bolloré Logistics offering freight forwarding and contract logistics services, reports the European Commission.
Commission’s Investigation
Initial findings indicated potential competition reduction in sea freight forwarding services in Martinique, Guadeloupe, and French Guiana.
Concerns arose due to vertical links between CMA CGM’s container shipping activities and Bolloré Logistics’ sea freight forwarding activities in these territories.
Proposed Remedies
Parties committed to divesting all of Bolloré Logistics’ activities in Guadeloupe, Martinique, Saint Martin, and French Guiana, along with relevant assets in metropolitan France.
These measures aimed to eliminate the vertical link between CMA CGM’s container shipping and Bolloré Logistics’ sea freight transport in the affected areas.
Approval Process
Positive market feedback on the commitments during the market test phase led to the Commission’s conclusion that the transaction, with modifications, would no longer pose competition concerns.
Cooperation with competition authorities in French Polynesia and New Caledonia was crucial during the investigation.
Conditional Decision
Approval is contingent upon full compliance with the commitments, monitored by an independent trustee under Commission supervision.
The Commission has to assess mergers exceeding certain thresholds to prevent concentrations hindering effective competition in the European Economic Area.
Transaction Details
Notification submitted to the Commission on January 5, 2024.
The standard review period for Phase I cases is 25 working days, extendable to 35 if commitments are proposed, as in this instance.
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Source: European Commission
