Italy & France pull the plug on Fincantieri’s takeover of Chantiers de l’Atlantique January 28, 2021, by Jasmina Ovcina
The planned mega-merger between Italian shipbuilding major Fincantieri with its French counterpart Chantiers de l’Atlantique has fallen through.
The decision has been made public in a joint statement by the French and Italian ministries of economies citing the impact of the COVID-19 pandemic on the tourism and cruise sector as well as the indecisiveness from the EU anti-trust regulator on the matter.
The European Commission opened an in-depth investigation into the takeover in October 2019 voicing concerns that the transaction may reduce competition in the global cruise shipbuilding market.
The two countries however reaffirmed “
the strength of their ties in terms of economic cooperation, particularly in the industrial sector” in a joint press release.
The agreement to sell Chantiers de l’Atlantique shares, signed by the French State, Fincantieri and Naval Group on February 2, 2018, will end on January 31, 2021, after having been extended five times.
The parties have decided not to extend this agreement again. Indeed, the tourism sector is currently facing an unprecedented level of economic uncertainty, due to the Covid-19 crisis, which does not allow the operation to continue.
This operation, which was supported by France and Italy, was initiated more than three years ago, but its conclusion was subject to the approval of the European Commission.