On July 21, China International Marine, Inc. and Netherlands-based Burg Industries stated that their merger announced in February, which would have created one of the world's largest container makers, would be scrapped. This merger, valued at approximately $104 million, would have effectively combined the two companies under a single holding company.
China International said that the decision to terminate the deal was made after “judging the process for European Union regulators to review the transaction.” However, Burg Industries CEO Cees Van der Burg reportedly held that the EC notified China International and Burg to terminate the deal out of concerns that the proposed joint venture would become a monopoly in the market for the manufacture of tank containers for liquid cargos.
The EC investigation, launched in March, marked the first EC antitrust investigation into a Chinese company. The Chinese National Development and Reform Commission had already given its approval to the deal in April after the proposed merger was given a nod by the Chinese Ministry of Commerce.