The French Polynesian Antitrust Authority has authorized the acquisition of the entire capital of the company Bolloré Logistics logistics of the French entrepreneur Vincent Bolloré by the French shipping group CMA CGM, which last spring announced its intention to implement the takeover worth €4.65 billion ( of 9 May 2023), provided that the latter - which notified the Project at the Polynesian Authority on October 2nd - Venda logistics activities operated in French Polynesia.

Specifying that for the first time, the Polynesian has made the clearance of a concentration conditional on the divestment of assets, announcing on Tuesday the decision of the Autorité Polynésienne de la Concurrence (APC) stressed that this will allow to ensure that the competitive structure of the market is maintained in the field of freight transport organisation in Polynesia French.

The PCA explained that the acquisition "carries the risk to block shippers' access to maritime transport of container freight offered by CMA CGM on the route that connects Europe to French Polynesia, with the risk of a increase in the prices of services and its impact on the price of sale of the goods on the market to the consumer'. To this end, in this regard, the PCA stated that it had 'identified high competitive risks of expelling competitors to the detriment of a competitive dynamics favourable to freight forwarders and, ultimately, analysis, to consumers'.

'The analysis from the point of view of competition - he has also explained the Polynesian Antitrust Authority - has made it possible to establish that the new entity would have a high capacity to preclude access to maritime freight transport on the route French Europe-Polynesia, due to CMA's market power CGM in the upstream market for freight transport, given the weak the responsiveness of current and potential competitors, and and to limit the power of buyers in the downstream market the organisation of the transport of goods'.

The PCA noted that 'the CMA CGM holds a position dominant, even a virtual monopoly, in the upstream market of ocean container cargo from Europe to French Polynesia. Goods from Europe - ha recalled the antitrust authority - account for more than 40% of the imports into French Polynesia, mainly local consumer goods that need a regular supply by Polynesian distributors, such as agri-food products, followed closely by intermediate goods, i.e. consumer goods and capital goods. By integrating the current market leader, the new entity would add to its dominant position on the French Europe-Polynesia line, that of Leading player in the downstream market of transport organisation to and from French Polynesia. That would have given her the possibility to significantly influence prices, and the supply conditions of its competitors on the market transport organisation. He could, after the operation, apply preferential treatment to its controlled to enable it to obtain lower prices and/or volumes compared to its competitor freight forwarders. This type behaviour would have deteriorated the competitiveness of the competitors of the new entity in the market of the organisation of transport and could have dissuaded the competing undertakings from entering or developing on the market, or even encourage them to get out of it."

The Autorité Polynésienne de la Concurrence has therefore concluded that the transaction, as it had been could have 'harmed competition in the market for the organisation of the transport of goods through a impact of vertical integration'. The PCA stressed, In addition, that 'the vertical integration allowed for the would have conferred a competitive advantage on the new entity through privileged access to confidential information'.

The PCA noted that, in order to address the concerns of the raised by the competition authority, the CMA CGM structural and behavioural commitments. 'The parties - he said specified the Antitrust Authority - they have committed to sell the business Bolloré Logistics' maritime network corresponding to the entire Maritime freight transport organisation activities Bolloré Logistics Polynésie, as well as the Bolloré Logistics France's activities related to French Polynesia that takes the form of a list of customers transferable to the purchaser of the assets sold by Bolloré Logistics. The divestment of these assets - noted the PCA - will allow for an effective remedy, and proportionate to the competition concerns identified'. The authority specified that "the scope of the commitments is limited to the activity of organizing transport and does not concern the organisation of the Bolloré Logistics air transport in French Polynesia nor Bolloré's non-controlling minority stake Logistics in TTI Tahiti».