The European Commission said it has opened an in-depth investigation to assess the proposed acquisition of Chantiers de l'Atlantique in France by the Italian shipbuilder Fincantieri, under the EU Merger Regulation.
“The Commission has preliminarily concluded that it is unlikely that a timely and credible entry from other shipbuilders would counteract the possible negative effects of the transaction,” the European Commission said in a statement.
“The transaction may therefore significantly reduce competition in the market for cruise shipbuilding, which could lead to higher prices, less choice and reduced incentives to innovate. The Commission has also preliminarily concluded that large customers would not have sufficient buyer power to counteract any risk of price increases as a result of the transaction,” it said.
Commissioner Margrethe Vestager, responsible for competition policy, said in the statement: “Demand for cruise ships is booming globally. Chantiers de l'Atlantique and Fincantieri are two global leaders in this sector. This is why we will carefully assess whether the proposed transaction would negatively affect competition in the construction of cruise ships to the detriment of the millions of Europeans taking a cruise every year."
According to the agreement between Fincantieri and the French government, would acquire a 50% stake in Chantiers de l’Atlantique, which has a large shipyard in St Nazaire, from the French state, which also agreed to lend a 1% stake to Fincantieri to allow it to take effective control on condition the company makes commitments on jobs, governance and intellectual property, Reuters reports.
