CIMC moves to purchase Netherlands-based Burg Industries
Shenzhen's China International Marine Containers' subsidiary, CIMC Tank Equipment Investment Holdings of Hong Kong will pay EUR48 million (US$63.3 million) to establish a joint venture with a major shareholder of Burg Industries, reports Dow Jones Newswires."The board discussed the proposal to buy Burg Industries again and believed that the acquisition of a 100 per cent stake of Burg Industries is in line with the company's long-term development strategy," a CIMC statement said. CIMC shares surged on Friday after the firm, the world's largest maker of freight containers, said it would buy the Netherlands' Burg Industries for EUR108 million under a deal modified to address anti-trust concerns, reported Xinhua News Agency.
The cargo box maker won't acquire Burg's tank container business, according to Yu Yuqun, a spokesman for the company. In July, CIMC 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," said Nancy Wang, an analyst at Shanghai's KGI Asia. "Burg's technology and market will help China International Marine expand around the world." The joint venture plans to fund the acquisition of Burg through capital injection and financing arrangements, CIMC said. CIMC and Burg are the world's largest makers of standard-size tank containers that carry liquid cargo, with CIMC commanding a more than 50 per cent share of the global market. CIMC still faces the need for regulatory approval from the EU Commission, China, Germany and the Netherlands. CIMC's main shareholders include Hong Kong-listed Cosco Pacific, Asia's third-largest port operator, and China Merchants Holdings (International), a Chinese state-owned port operator.