Stena Line is celebrating after the Irish Competition Authority (ICA) gave the green light to its takeover of DFDS Seaway’s Irish Sea services, ifw-net reports.
The ICA concluded that Stena’s takeover of vessels, related assets, inventory, employees and contracts relating to passenger and freight ferry services operated by DFDS would not substantially lessen competition in markets for goods or services in the Republic of Ireland.
However, the takeover is also being investigated by the UK’s Competition Commission.
Stena said: “As the Irish and UK competition processes are separate, we now await the decision of the UK Competition Commission, which is expected by 25 July.
“Stena Line has provided an undertaking to the Competition Commission that the acquired business will operate as an autonomous entity until its decision is made.”
Both competition authorities launched a full investigation into Stena’s €50 million (US$62.2m) bid for the Belfast-Birkenhead and Belfast-Heysham services after initial investigations were unable to conclude that the deal would not lessen competition.
In January, three routes on the Irish Sea were closed, sparking fears among hauliers that this, combined with the merger, could drive prices up.
Closed were 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 the UK’s Competition Commission, Stena will operate six.
In January, a spokesman for Stena Line said there would still be enough operators on the Irish Sea to ensure that prices would continue to be governed by market forces.
The deal will also see Stena take over port operations at terminals in Belfast, Birkenhead and Heysham and four ships: the chartered Lagan Seaways and Mersey Seaways, on the Liverpool-Belfast route; and the freight carriers Scotia Seaways and Hibernia Seaways.
The ICA concluded that Stena’s takeover of vessels, related assets, inventory, employees and contracts relating to passenger and freight ferry services operated by DFDS would not substantially lessen competition in markets for goods or services in the Republic of Ireland.
However, the takeover is also being investigated by the UK’s Competition Commission.
Stena said: “As the Irish and UK competition processes are separate, we now await the decision of the UK Competition Commission, which is expected by 25 July.
“Stena Line has provided an undertaking to the Competition Commission that the acquired business will operate as an autonomous entity until its decision is made.”
Both competition authorities launched a full investigation into Stena’s €50 million (US$62.2m) bid for the Belfast-Birkenhead and Belfast-Heysham services after initial investigations were unable to conclude that the deal would not lessen competition.
In January, three routes on the Irish Sea were closed, sparking fears among hauliers that this, combined with the merger, could drive prices up.
Closed were 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 the UK’s Competition Commission, Stena will operate six.
In January, a spokesman for Stena Line said there would still be enough operators on the Irish Sea to ensure that prices would continue to be governed by market forces.
The deal will also see Stena take over port operations at terminals in Belfast, Birkenhead and Heysham and four ships: the chartered Lagan Seaways and Mersey Seaways, on the Liverpool-Belfast route; and the freight carriers Scotia Seaways and Hibernia Seaways.