EC antitrust probe forces scrapping of CIMC deal with Burg

China International Marine Containers, the world's largest maker of containers, has scrapped a plan to buy Dutch tank maker Burg Industries due to opposition from the European Commission's antitrust regulators.

The regulators informally notified the two companies to drop the deal because their proposed joint venture would become a monopoly in making tank containers for liquid cargoes, Burg Industries chief executive Cees van der Burg said in a telephone interview from the Netherlands yesterday.

CIMC and Burg said in February that they would set up a venture that would carry all of Burg's assets, valued at Euro110 million ($1.08 billion). CIMC would spend Euro37.5 million to take a 75 per cent stake, while Burg would take the other 25 per cent with Euro12.5 million.

'It's wrong for the [EC] to make such a decision and we are disappointed,' said Mr van der Burg.

The EC antitrust department launched an investigation in March to find out if the transaction would be detrimental to customers such as leasing companies and logistic operators.

It was the commission's first anti-trust inquiry into a Chinese company.

Shenzhen-listed CIMC said in an announcement to the stock exchange yesterday that it decided to suspend the deal on Thursday without elaborating.