Business Activities News
- CIMC to buy Dutch rival Burg Industries
Date: 12-Dec-2006 Sources: (Shenzhen Daily)
CHINA International Marine Containers Co. (CIMC), the world's largest maker of freight containers, will buy the Netherlands' Burg Industries BV for 108 million euros (US$144 million) under a deal modified to address antitrust concerns.
CIMC will buy Burg's trailer and truck bodies as well as storage tank manufacturing business, the Shenzhen-listed company said in a statement.
CIMC won't acquire Burg's tank container business, Yu Yuqun, a spokesman for the Shenzhen-based company, said.
CIMC in July dropped plans to purchase Burg after European regulators expressed concerns over the merger of the two companies' tank-container businesses and extended the deal's review.
'This way the deal will be cleared,'' Nancy Wang, an analyst at KGI Asia Ltd. in Shanghai, said. 'Burg's technology and market will help China International Marine expand around the world.''
The European Union's antitrust regulator in March said the acquisition as originally planned would create 'a quasi-monopolistic market position'' because it would have combined the two largest makers of tank containers.
'Burg will sell its tank container business to facilitate our acquisition,'' Yu said.
CIMC's yuan-denominated A shares gained 3.24 percent to 17.50 yuan yesterday. The company's Hong Kong dollar-currency B shares rose 3.59 percent to HK$14.71.
The acquisition will be made through a 60 million euro venture formed by CIMC's Hong Kong unit CIMC Tank Equipment Investment Holdings with one of the shareholders of Burg.
The deal, subject to government approval from China, Germany and Netherlands, is scheduled to be completed by March 31, CIMC said.
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