Fincantieri receives one-month extension for acquisition of Chantiers de l’Atlantique
The one-month extension for its planned acquisition of the French counterpart Chantiers de l'Atlantique has been obtained by Italian shipbuilding major Fincantieri, Reuters said, citing a statement from the French Ministry of Finance.
As the proposal for the acquisition was due to expire today, the proposal is being made. The acquisition contract for Chantiers de l'Atlantique, formerly STX France, was signed by Fincantieri in February 2018.
Fincantieri will claim 50% control of Chantiers de l'Atlantique under the deal, with an additional 1% to be lent from the French state.
The deal will create a shipbuilding giant in the cruise industry, if authorised by the EU antitrust body, as the two yards account for a large chunk of global orders.
Fears have been expressed that this could lead to possible cruise ship hikes at a time when the sector is severely affected by the COVID-19 effect.
Back in 2019, under the EU Merger Regulation, the European Commission launched an in-depth investigation into the proposed tie-up, citing fears that the deal could minimize competition in the global cruise shipbuilding industry.
The Commission has previously concluded that it is unlikely that the potential negative consequences of the transaction will be counteracted by a timely and plausible entry from other shipbuilders.
The final EU Anti-Trust Entity decision has yet to be finalized and made public.
Maritime Business World