Maersk pulls out of P3 network after China rejection
The news would have no impact on Maersk Groups projected annual financial results
The Danish shipping giant Maersk has abandoned its P3 container shipping network plans after the Chinese Ministry of Commerce (MOFCOM) failed to approve the alliance, Maersk wrote in a press release.
The Chinese authorities couldn’t approve the alliance – which would pool ships from Maersk, CMA CGM of France and Swiss-owned Mediterranean Shipping Company in order to cut costs – because of Chinese legislation concerning merger control.
“The P3 partners take note of and respect MOFCOM’s decision. Subsequently, the partners have agreed to stop the preparatory work on the P3 Network, and the P3 Network as initially planned will not come into existence,” Maersk wrote in a press release.
No result ramifications
The news is somewhat surprising since the network had already been approved by the US Federal Maritime Commission and the EU Commission.
Analysts had predicted that the alliance would have massive implications for the global container shipping market and generate a player that would be a force in the shipping line industry.
Maersk noted that the abandonment of the P3 Network would have no material impact on Maersk Group’s projected financial results for this year.