Fincantieri gets one-month extension for Chantiers de l’Atlantique takeover

Italian shipbuilding major Fincantieri has received a one-month extension for its planned acquisition of the French counterpart Chantiers de l’Atlantique, Reuters reported citing a statement from the French Ministry of Finance.

According to the report, Fincantieri accepted the offer.

The proposal is being made as the proposal for the acquisition was set to expire today.

Fincantieri signed the acquisition deal for Chantiers de l’Atlantique, former STX France, in February 2018. 

Under the agreement, Fincantieri would assume 50 percent ownership of Chantiers de l’Atlantique, with an additional 1 percent to be borrowed from the French state.

The deal, if approved by the EU antitrust body, would create a shipbuilding giant in the cruise industry, as the two yards account for a major chunk of global orders.

Fears have been raised that this could result in potential hiking of cruise ships at a time when the sector is badly afflicted by the impact of the COVID-19.

The European Commission opened an in-depth investigation into the proposed tie-up back in 2019 under the EU Merger Regulation citing concerns that the transaction may reduce competition in the global cruise shipbuilding market.

The commission has preliminarily concluded that it is unlikely that a timely and credible entry from other shipbuilders would counteract the possible negative effects of the transaction. 

The final decision from the EU anti-trust body is yet to be finalized and made public.