Competition authorities probe Stena-DFDS deal
DFDS’s sale of its Irish Sea routes to Stena is being investigated by the Irish Competition Authority (ICA) and, separately, hauliers are concerned that DFDS’s withdrawal from the market could push up prices.
The ICA said an initial investigation into Stena Line’s €50 million (US$62.2m) proposal to purchase DFDS Seaways’ Belfast-Birkenhead and Belfast-Heysham services had been inconclusive, and it would look into the deal in more detail.
It said: “Following a preliminary investigation, the competition authority is unable to conclude that the acquisition will not substantially lessen competition in markets for goods or services in the state without carrying out a full investigation.”
Stena Line was unable to comment on the investigation.
The ICA has until 13 April to make a decision on the proposed sale and has invited interested parties to make submissions no later than 5pm on 4 February.
The UK’s Office of Fair Trading is also looking at the deal, as standard practice, and told IFW it would announce a decision on 8 February.
By the end of the month, three routes on the Irish Sea will close – DFDS’s services between Dublin and Birkenhead and Heysham and Stena’s service between Larne and Fleetwood – leaving four ferry firms operating 14 freight-carrying routes.
If the acquisition is given the green light by competition authorities, Stena will operate six.
Meanwhile, hauliers are concerned that Stena’s acquisition and the loss of routes will result in increased prices on the trade.
One industry observer said: “Stena Line, which is already dominant in shipping passengers, will increase market share instantly.
“Prices for overnight ferry tickets are likely to increase dramatically as it starts to milk the freight v passengers [situation] on extremely full ships.”
A spokesman for Stena Line said there would still be enough operators on the Irish Sea to ensure that prices would still be governed by market forces.
The ICA said an initial investigation into Stena Line’s €50 million (US$62.2m) proposal to purchase DFDS Seaways’ Belfast-Birkenhead and Belfast-Heysham services had been inconclusive, and it would look into the deal in more detail.
It said: “Following a preliminary investigation, the competition authority is unable to conclude that the acquisition will not substantially lessen competition in markets for goods or services in the state without carrying out a full investigation.”
Stena Line was unable to comment on the investigation.
The ICA has until 13 April to make a decision on the proposed sale and has invited interested parties to make submissions no later than 5pm on 4 February.
The UK’s Office of Fair Trading is also looking at the deal, as standard practice, and told IFW it would announce a decision on 8 February.
By the end of the month, three routes on the Irish Sea will close – DFDS’s services between Dublin and Birkenhead and Heysham and Stena’s service between Larne and Fleetwood – leaving four ferry firms operating 14 freight-carrying routes.
If the acquisition is given the green light by competition authorities, Stena will operate six.
Meanwhile, hauliers are concerned that Stena’s acquisition and the loss of routes will result in increased prices on the trade.
One industry observer said: “Stena Line, which is already dominant in shipping passengers, will increase market share instantly.
“Prices for overnight ferry tickets are likely to increase dramatically as it starts to milk the freight v passengers [situation] on extremely full ships.”
A spokesman for Stena Line said there would still be enough operators on the Irish Sea to ensure that prices would still be governed by market forces.