BlackRock and MSC’s bid for CK Hutchison’s terminal at Barcelona port could lead to higher prices or reduce the quality of container terminal services, EU antitrust regulators warned on Wednesday, as they opened a full-scale investigation.
The EU’s move could require the pair to offer concessions to address regulatory concerns.
Under the deal, Terminal Investment Holding (TIL), a unit of Switzerland-based MSC Mediterranean Shipping Company, and BlackRock will acquire joint control of Hutchison’s terminal at Barcelona port.
The port is the main deep-sea gateway for cargo to and from Barcelona and its hinterland, and also connects with traffic to and from southern Europe.
The European Commission, which acts as the EU competition enforcer, warned that the merged entity may block rival container liner shipping companies, with MSC getting preferential treatment. The EU executive will decide by April 30 whether to clear the deal.
Reuters was the first to report that the EU competition enforcer would launch an investigation. The scrutiny of the Spanish deal could indicate how EU regulators could examine the European part of a wider bid by BlackRock and MSC for CK Hutchison’s global port assets which has yet to be finalised.
(Reporting by Foo Yun Chee; Editing by Kirsten Donovan)
