China Navigation fails first stage of New Pacific bid

The Independent Consumer and Competition Commission has declined to give China Navigation Company Pte Ltd clearance to acquire New Pacific Line Pte Ltd, said the commission in statement.
The China Navigation had applied to acquire the business and assets of NewPac.
“The ICCC has declined to give clearance because the ICCC is not satisfied that the proposed acquisition will not, and will not be likely to, have the effect of substantially lessen competition in the markets for a range of shipping and related services including international liner cargo shipping services to and from Papua New Guinea; coastal shipping services and stevedoring and handling; shipping agency services; and downstream services and goods using any of those services in PNG,” said ICCC commissioner and CEO Paulus Ain.
“The ICCC will now proceed with the second step to assess the authorisation application to determine whether or not the proposed acquisition, although it has been denied on competition grounds, must be allowed based on public benefit grounds.
“In assessing the authorisation application, the ICCC must grant authorisation if it is satisfied that the public benefits that may stem from the proposed acquisition will, or will likely to, outweigh the public detriments including lessening of competition.
“The ICCC must decline authorization should it form a view that the public detriments outweigh public benefits put forward by the applicant.”
The commission said it would make a ruling on October 12.