The Competition Commission of South Africa has approved the proposed transaction whereby Norden Shipping intends to acquire the rights, title, and interests in certain contracts of affreightment (COAs) from Taylor Maritime. The acquisition was approved without conditions.
The acquiring firm, Norden Shipping, is a Singaporean entity ultimately controlled by the Danish company Dampskibsselskabet Norden. The commission noted that while it has no physical presence in South Africa, it operates in the country through bulk commodity shipments, including grain, coal, minerals, and ores.
The target business consists of the rights to eight COAs currently held by Taylor Maritime, a wholly-owned subsidiary of Grindrod Shipping Holdings, which is in turn owned by Taylor Maritime.
The COAs are for dry bulk commodity shipping in South Africa, primarily from Richards Bay and Saldanha Bay, and cover commodities such as mineral sands, pig iron, chrome, ferrochrome, granite, aluminium ingots, limestone, sulphur, and coal.
The Commission stated that it is of the view that the proposed transaction is, "unlikely to substantially lessen or prevent competition in any market," and that it, “does not raise significant public interest concerns."
