Matson didn't consider Horizon's Hawaii operations due to anti-trust concerns

Bill Cresenzo

Reporter- Pacific Business News

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Matson Inc., which this week announced that it was buying the Alaska arm of Horizon Lines Inc., had been considering the move for several years, but it never looked at buying Horizon's Hawaii operations because of potential anti-trust concerns.

Matson (NYSE: MATX), founded in 1882, has the lion's share of the Hawaii shipping market, although spokesman Jeff Hull, said that market share can vary, and the company doesn't have specific numbers.

Privately-owned Pasha, which entered the Hawaii market 10 years ago, said that it will acquire all of Horizon's Hawaii trade-lane business, including four Jones Act container ships.

"After closing, we plan to start the process to upgrade and refurbish the Horizon vessels in keeping with our commitment to environmental responsibility and stewardship," Emily Sinclair, a Pasha spokeswoman, told PBN via email. "We anticipate that these improvements will allow Pasha to provide even higher quality service to our valued customers."

Hull told PBN that the Matson transaction is "contingent on the Pasha and Horizon transaction closing, which is subject to review by the Department of Justice and Federal Trade Commission."

Specifically, the transaction will undergo antitrust examination under the Hart-Scott-Randino Act of 1976, Hull said.

Right now, according to Hull, Matson has three arrivals in Hawaii per week, Horizon has two and Pasha has one every other week.

Pasha is also adding a second ship in early 2015, Sinclair said.

"Pasha now represents only a very small percentage of the shipping volume between the Mainland United States and Hawaii," Sinclair said. "Through this transaction, Pasha will grow into a significant competitor and provide a viable alternative to Matson on these routes."

Bill Cresenzo covers residential real estate, retail and restaurants for Pacific Business News.