Airbus SE logo

AIR - Airbus SE News Story

€99.57 3.6  3.7%

Last Trade - 14/05/21

Sector
Industrials
Size
Large Cap
Market Cap £67.37bn
Enterprise Value £69.66bn
Revenue £42.84bn
Position in Universe 14th / 850

Deadline looms for Italian-French shipbuilding deal

Tue 29th December, 2020 5:53pm
MILAN, Dec 29 (Reuters) - Italian shipbuilder Fincantieri's
 FCT.MI  planned acquisition of state-controlled French rival
Chantiers de l'Atlantique to create a European "Airbus of the
Seas" is facing collapse barring last-minute political
intervention from Paris or Rome.
    With the offer due to expire in two days after repeated
deadline extensions over competition concerns, the deal is still
awaiting European antitrust approval in a market that has been
completely transformed by the coronavirus pandemic.
    "There is no news on our side, we are taking no further
action," a spokesman for the Italian group said, adding that the
group had made full submissions to the European Commission.
    "A decision by Dec. 31 could only be political and taken by
governments or by Brussels," he said.
    Originally launched in 2018, the planned tie-up between
Fincantieri and Chantiers de l'Atlantique was intended to create
a European champion in cruise ship construction.
    However, completion has been delayed by European Commission
concerns that the merger of two global leaders in an already
concentrated market could increase prices for cruise ships.
    An investigation was suspended in March to give the
companies time to respond. But the situation has remained
blocked, with no clear indication as to whether the deal will be
able to proceed.
    In addition, Fincantieri has faced strong opposition in
France, where local politicians fear job losses and worry China
could gain access to sensitive technology following a
cooperation accord between Fincantieri and China State
Shipbuilding Corporation (CSSC).
    Complicating the situation further, demand for cruise liners
has been torpedoed by COVID-19, which ripped through a number of
ships, leaving major customers like Carnival Corp  CCL.N 
struggling. For Fincantieri, whose own finances have been badly
strained by the crisis, that has added to questions over the
industrial rationale of the deal.
    Earlier this month, Fincantieri Chairman Giampiero Massolo
told Reuters the group expected a Commission decision by Dec. 31
and added: "If not, we'll have to decide whether Chantiers is
still a good deal."  urn:newsml:reuters.com:*:nL1N2IN0LG

 (Reporting by Elisa Anzolin, additional reporting by Giselda
Vagnoni in Rome and Gwenaelle Barzic in Paris, editing by James
Mackenzie and Dan Grebler)
 ((elisa.anzolin@thomsonreuters.com; 0039 0266129692;))
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.