Svitzer Must Sell of Liverpool Operation

Competition Commission reports on Svitzer Wijsmuller Purchase of Adsteam

On Friday (09/02/07) the United Kingdom’s Competition Commission published its final report relating to SvitzerWijsmuller A/S’ (“SvitzerWijsmuller”) recommended cash Offer for all of the shares in Adsteam Marine Limited (“Adsteam”).

The Competition Commission (CC) will require SvitzerWijsmuller A/S to sell off one of the harbour towage operations in Liverpool, if it goes ahead with the anticipated acquisition of Adsteam Marine Ltd.

In its final report, the CC has decided that the acquisition may be expected to result in a substantial lessening of competition for towage services in Liverpool, although it has not identified similar problems anywhere else in the UK. This confirms the provisional findings which were published in December last year.

Svitzer Marine Ltd (Svitzer), the UK subsidiary of SvitzerWijsmuller A/S, operates 41 tugs and provides services in seven port areas and at six terminals in the UK. Adsteam UK Ltd (Adsteam), the UK subsidiary of Adsteam Marine Ltd, provides harbour and terminal towage services in six of the UK’s major deep-water port areas and their adjacent waterways.
Liverpool is the only port where Svitzer and Adsteam currently provide competing towage services.

SvitzerWijsmuller said it welcomed these findings and is working with the UK Competition Commission to finalise undertakings agreeing to the sale of either of the Liverpool businesses. SvitzerWijsmuller currently expects that it will be able to come to an agreement with the UK Competition Commission on the required undertakings before the end of the Offer Period, which is currently due to expire on 16 March 2007. Meanwhile Adsteam also said they were satisfied and continued to recommend to shareholders the offer from SvitzerWijsmuller

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