OSG Drops Acquisition Bid

What now for American Trading Transportation Co.?

The sale of the company to Overseas Shipholding Group Inc. was dropped in mid-March after both companies said that antitrust questions raised by the U.S. Department of Justice had delayed the acquisition past a cancellation date agreed to by the two companies.

According to press reports, BP North America Inc., the U.S. subsidiary of British Petroleum Co., was the loudest voice opposing the merger of the two fleets. Reportedly, BP felt an OSG-ATT merger would lead to over concentration of ownership of ships eligible to move petroleum in the Jones Act cabotage trade with the potential to boost freight rates.

Several sources in the shipping industry were surprised that objections to the merger would be cause the Justice Department to kill a merger. They note several U.S. flag tankers are in lay-up and oil movements from Alaska are expected to decline in coming years.

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