Mitsui OSK Lines (MOL), Kawasaki Kisen Kaisha (K Line) and Nippon Yusen Kaisha (NYK) launched a new merger called Ocean Network Express.
The new container transport company is expected to start operations in April 2018 with 7% share of the global market, and it would be the sixth biggest carrier.
According to Splash 24/7, the new entity is headquartered in Singapore and local offices in Hong Kong, London, Richmond and Sao Paulo.
In a joint release, the three companies stated: “The move will allow Ocean Network to better meet customers’ needs by providing high quality, competitive services through the consolidation and enhancement of the three companies’ global network and service structures”.
However, the Federal Maritime Commission in the US (FMC) recently rejected the Japanese merger, saying that The Shipping Act does not provide the FMC with authority to review and approve mergers.
K-Line and MOL will each hold 31 percent, and NYK Line will hold the remaining 38 percent.
“The establishment of the new joint venture will officially be announced once all anti-trust reviews are completed,” said the Ocean Network Express statement.