EC to probe CIN and Tirrenia merger
The EC is to investigate the merger between CIN and Tirrenia.
Negotiation consultancy specialists may be needed during the proposed merger between Italian transport firms Tirrenia and Compagnia Italiana di Navigazione (CIN), as the European Commission (EC) has initiated an in-depth investigation into the move.
CIN intends to acquire the state-run ferry group but the EC has revealed serious concerns regarding competition during its initial investigation of the market.
It has 90 working days to decide whether this transaction would cause damage and the analysis of this merger does not prejudge the inquiry's eventual findings, the public body stated.
Both parties have large or monopolistic combined market shares on many Italian maritime routes, in particular journeys to Sardinia, the EC remarked.
EC vice-president in charge of competition policy Joaquin Almunia explained customers must continue to have a selection of different ferry services when travelling to and from Sicily and Sardinia.
"The proposed acquisition could strongly reduce competition in the market to the detriment of millions of travellers and numerous freight transporters," he stated.
Tirrenia also travels to Cagliaria, Trapani, Palermo and Naples, as well as the Italian peninsula.
Posted by Ron Maverick
Source: EC press release, January 18th