China blocks takeover of Danish container company Maritime India News

Authorities prevent China from taking over Danish container company. Freight containers are very resilient, as shown by tests such as those by Danish shipping giant AP Moller Maersk. China International Marine Containers offered around €1 billion to become the company’s majority shareholder, but the transaction fell through at the request of authorities defending fair competition in Germany and the United States. With the Chinese purchase, they controlled 90 percent of the world market for refrigerated containers, and the Corona crisis showed the importance of containers for world trade, reports DW.

Choosing China as a buyer is something very surprising because everyone thought that the authorities would block the purchase, which eventually happened. China is already too powerful in this industry to also buy Maersk, which is why the deal fell through, Chinese investments in the European Union such as in the port of Hamburg are under scrutiny, in which the Chinese state shipping company Costco recently acquired a small stake in a freight terminal in this German city. Overall, 10% of the European Union’s port capacity is now in Chinese hands.

the foundation examined chinese investments in germany and analyzed the strategy behind them. “Made in China 2025” is a policy-level strategy aimed at making China a leading industrial nation, and the acquisition of foreign high-tech companies is part of this plan. Normally, the Federation of German Industries sees it positively that Chinese companies want to invest in Germany, it means a vote of confidence, the decisive question in the discussion about this company in the port of Hamburg is whether a Chinese shareholder can force decisions on us, that we don’t like that, if that’s not the case, I have no problem with the investment and see it positively, but we have to protect our interests and not get rid of all German assets. Fears surrounding the Maersk acquisition have allayed Supply Chain. Problems have subsided and demand is falling, but Western companies know that Western governments are wary of doing business with China.

Source: DW

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