Proposed French-Italian shipbuilding merger could harm competition – EU

Proposed French-Italian shipbuilding merger could harm competition - EU
Illustrative picture. PHOTO CREDIT: Mer et Marine

The European Commission on Tuesday said the proposed merger acquisition of French shipbuilding firm, Chantiers de l’Atlantique, by Italian shipbuilder Fincantier, could significantly harm competition in shipbuilding.

The commission noted that based on information provided by France and Germany, the transaction could in particular harm the global market for cruise ships.

Both countries had asked the commission to investigate the planned acquisition by Fincantier.

The merged entity would not have a turnover high enough to require notification to EU regulators.

“However, the plan was notified for authorization in France and Germany,” the Commission said in a statement.

The French company was previously called STX France.