ICCC rejects China Navigation’s bid for New Pacific Line assets

THE Independent Consumer and Competition Commission (ICCC) has declined an application by China Navigation Company Pte Limited (CNCo) to acquire the assets of New Pacific Line Pte Ltd (NewPac).
According to a statement from ICCC, CNCo had applied to the ICCC for either clearance or authorisation to acquire the assets of NewPac.
In its applications, CNCo argued that the acquisition should be allowed to proceed under the ICCC Act because it would not lessen competition.
It said it would also result in more benefits to the public in terms of increasing efficiency and rationalisation, reducing port congestion and reducing the emission of greenhouse gas and sulphur acid.
CNCo and NewPac compete in international shipping services to and from PNG.
CNCo is wholly owned by Swire Group, which has majority shareholdings in Steamships Trading Company (which then has majority interest in Consort Express Lines).
Consort and Steamships also have direct or indirect interests in other businesses that operate shipping-related services such as stevedoring and/or handling services and others.
ICCC acting chief executive officer Avi Hubert said: “The ICCC initially assessed CNCo’s clearance application and was not satisfied that the proposed acquisition would not lessen competition.
“The ICCC therefore declined giving clearance for the acquisition to proceed. The acquisition will not only lessen competition in the international liner freight services (as defined by CNCo) but also have negative competition effects on a range of shipping services to and from PNG in terms of coastal cargo liner shipping services and stevedoring, handling, shipping agency services and downstream services and goods using any of these services in PNG because of Swire Group’s presence directly and indirectly in its subsidiaries in Steamships and Consort.