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EU: MSC and BlackRock's bid to buy Hutchison's Barcelona Terminal may increase prices

The EU antitrust regulators warned that the BlackRock-MSC bid to buy CK 'Hutchison terminal in Barcelona port may lead to "higher prices" or a reduction in 'quality' of container terminal services. They opened a full investigation on Wednesday.

The EU could force the two countries to make concessions in order to address "regulatory concerns".

Terminal Investment Limited Holding, a subsidiary of MSC Mediterranean Shipping Company based in Switzerland, and BlackRock, will acquire joint control over Hutchison’s terminal at Barcelona Port.

The port is the main deep-sea gateway to and from Barcelona, as well as connecting with traffic from and to southern Europe.

The European Commission (the EU's competition enforcer) warned that the combined entity could block rival container liners shipping companies by giving MSC preferential treatment. EU executive must decide whether or not to approve the merger by April 30. The?first to report the EU's competition enforcer was going to launch an investigation.

The Spanish?deal may provide a clue as to how EU regulators might examine the European portion?of a larger bid by BlackRock & MSC for CK Hutchison’s global port assets, which is yet to be finalised. (Reporting and editing by Kirsten Doovan; Foo Yunchee)

(source: Reuters)