CPH Post

Business

Maersk pulls out of P3 network after China rejection

The news would have no impact on Maersk Group’s projected annual financial results


Analysts had predicted that the alliance would have massive implications for the global container shipping market (Photo: Scanpix)

June 17, 2014
14:15

by Christian Wenande


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.

READ MORE: Full steam ahead for Maersk shares

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.



Related stories



Latest Comments

(November 30, -1 00:00)

And still Climate Change and deforestation and overfishing and oil, gas and...

(Rudy Haugeneder on September 17, 2014 18:30)

High speed network they say

(Nejc Bukovac on September 17, 2014 16:01)

Wait......so he MUST HAVE BEEN a foreigner, right? Oh...no?

(Kl Queteimporta on September 17, 2014 15:39)

If the visit has as a business objective to increase trade between DK and...

(Ruben Shiffman on September 17, 2014 11:24)

I am sure you are right, William Harvey; there WAS a cover-up. I explore it...

(Irene Ward on September 16, 2014 21:42)

Fast pace. proper English, well done Maria and Janice

(Stig Lohmann-Devantier on September 16, 2014 21:32)

Pubic: Ah loooook, what a cute little feller! Copenhagen zoo administration:...

(Cliff Arroyo on September 16, 2014 21:19)

Good !!!!

(Kenneth Kachimanga on September 16, 2014 19:50)

A good read.

(Tom Donde on September 16, 2014 18:35)