The Competition Tribunal has approved, with conditions, the intermediate merger whereby Nippon Yusen Kabushiki Kaisha (NYK), Mitsui OSK Lines (MOL) and Kawasaki Kisen Kaisha (KL) intend to merge their container liner shipping businesses to form a joint venture (JV) in the shipping market.
NYK, MOL and KL will share ownership in the JV, which will be known as Ocean Network Express (ONE).
The Competition Commission had originally prohibited the merger, as it felt the transaction would have likely strengthened coordination in the market for the transportation of cars, liner shipping services and bulk shipping services.
However, in the proceedings before the tribunal, the commission, jointly with the merging parties, proposed a range of conditions which addressed its concerns.
The merging parties disputed the need for conditions, but indicated that they would agree to be bound by such in the interests of obtaining approval.
Broadly, the conditions prohibit a cross pollination of employees and executives between the container liner JV and adjacent businesses, as well as imposing a number of extensive monitoring and reporting mechanisms.