The European Commission announced Wednesday the opening of an in-depth investigation into the proposed acquisition of Chantiers de l'Atlantique (formerly STX France) by Italy's Fincantieri, considering the deal likely to reduce "competition in the market shipbuilding cruise ".
"We will examine carefully whether the proposed operation is likely to have a negative impact on competition in the field of cruise ship construction, to the detriment of the millions of Europeans who go on a cruise each year," the report said. European Commissioner for Competition, Margrethe Vestager.
The French government supports the merger
After a preliminary investigation, the Commission considers it "unlikely" that a new player could enter the market "in a timely and credible manner to offset any negative effects of the transaction". According to her, the buyout could indeed "cause a rise in prices, a reduction of choice and a lower incentive for innovation". In addition, it considers that "large customers" will not have "sufficient buying power to counter any risk of price increases that would result from the transaction". The EU executive now has 90 working days, until 17 March, to make a decision.
Fincantieri had expressed Tuesday night, after press reports referring to the investigation, his disagreement with the decision of the EU if it was to be confirmed. The Commission has been looking into the operation since January, which has made Italy cringe. For his part the French Minister of Finance, Bruno Le Maire, had said he believed in this merger and "the rapprochement of France and Italy in naval matters".
A compromise found in September 2017
The takeover of the Chantiers de l'Atlantique - established in Saint-Nazaire (western France) - by the Italian group was announced in September 2017. The agreement concluded then provided that the transalpine group would hold 50% of the capital, plus 1 additional% loaned by the French State. This serial started in 2016 when STX France, then the only profitable unit of STX Offshore & Shipbuilding, was put up for sale because of bankruptcy.
Fincantieri, controlled by the Italian state and only candidate for the resumption, had then obtained the green light of the government of François Hollande. But Emmanuel Macron, newly elected President of the Republic, had asked in May 2017 to review the French participation in the increase, aiming for an equal distribution. This proposal was initially rejected by Rome, the Italians insisting to hold 51% of the capital and the control of the board of directors. The two countries finally reached a compromise in September 2017.