Canadian transport group CP Ltd. to acquire Bermuda-registered conbulker shipping company Cast Group Ltd.

The deal was expected to close October 31 last year but CN North America, a transport competitor of CP, led opposition to the deal on the basis of market share, according to an article in Lloyd's List.

A previous court injunction, instigated by past Cast president Mr. Klaus Glusing and granted by the Bermuda Supreme Court which prohibited Cast Marine Holdings from selling all or part of the company, was withdrawn about two weeks ago, according to one source.

Mr. Julian Hall, lawyer for Mr. Glusing, could not be reached yesterday afternoon to comment on why the injunction, granted last September, was discontinued.

CP will run the Cast shipping business independently of Canada Maritime Ltd.

The latter is a Bermuda-registered wholly-owned CP subsidiary and competitor to Cast.

"Everybody was waiting for the (NTA) decision,'' said Mr. Tom Meerman, Chief Operating Officer of Cast in Montreal.

"I'm told parties have 30 days to protest'', he added yesterday, but he was aware of no appeals to the NTA decision.

CP learned of the decision Friday, January 20, Mr. Meerman noted.

CP applied to the NTA several months ago to buy the Bermuda-registered conbulker but the decision came out in favour of CP after about two weeks of intensive investigation by the NTA, Lloyd's List said.

The NTA cited four reasons for approving the deal; The purchase would improve Montreal's ability to compete with US east coast ports and Halifax, resulting in better employment and regional economic development for the province of Quebec; The deal would not significantly affect competition between shipping lines serving Canada/US and North European trade. Cast, combined with Canada Maritime, would have 14 percent of North Atlantic trade and about 20 percent of the North Europe and Central Canada/US midwest/US northeast markets.

The combination will increase efficiency and contribute to high levels of service and frequency to Canadian shippers; and The proposed acquisition would not affect competitive rail access to Montreal, including CN North America's operations.

Canada Maritime's CEO, Mr. Ray Miles, told Lloyd's List he was delighted with the NTA decision and hoped the purchase could proceed as quick as possible.

Since the purchase was announced, Cast changed from a conbulker operation to chartering four vessels.

The acquisition will not impact Bermuda-registered CP of Canada subsidiaries Canadian Pacific (Bermuda) Ltd., Canadian Pacific (Bermuda) Holdings Ltd., Canadian Pacific (1992) Ltd. and Canadian Pacific Hotels (Bda) Ltd.