The European Commission has approved the proposed acquisition of Bolloré Logistics SE by CMA CGM. The approval, made under the EU Merger Regulation, is conditional upon full compliance with the commitments offered by the parties, the Commission announced February 23.
The Commission’s investigation showed that the merger would have reduced competition in the markets for the provision of sea freight forwarding services in Martinique, Guadeloupe, and French Guiana.
In a statement, the Commission said that, in particular, it found that the transaction would have created important vertical links between CMA CGM’s upstream container lining shipping activities on routes connecting Europe with Martinique, Guadeloupe, and French Guiana, and also Bolloré Logistics’ downstream sea freight forwarding activities in those territories.
The Commission found that CMA CGM could have the ability and incentive to favor Bolloré Logistics at the expense of rival freight forwarders, in particular in view of CMA CGM’s very high market shares on these overseas routes and the competitive structures in these territories.
The proposed remedies that address the Commission’s competition concerns, are that the parties divest all of Bolloré Logistics’ activities in Guadeloupe, Martinique, Saint Martin, and French Guiana; and a number of assets in metropolitan France linked to these activities.
“The remedies offered by the parties will ensure that the local sea freight forwarding markets remain competitive and that, ultimately, local customers do not end up paying higher prices for products imported from mainland Europe,” said Margrethe Vestager, executive vice-president in charge of competition policy.
Following the positive feedback received in the context of the commitments’ market test, the Commission concluded that the transaction, as modified by the commitments, would no longer raise competition concerns.
The transaction was notified to the Commission on January 5, 2024.
More information will be available on the Commission’s competition website, in the public case register under the case number M.11143.
