Italy Probes MSC’s Acquisition Of 49% Stake In Ferry Company Moby Over Competition Concerns

The Italian antitrust authority has launched an investigation into MSC’s acquisition of a 49% stake in the Italian ferry company Moby.

The investigation, which began on November 13, focuses on the deal’s possible anti-competitive impacts.

The Italian competition and market authority (AGCM) is concerned that the acquisition may limit competition in ferry routes between Italy and its larger islands, where Moy and MSC’s subsidiary, Grandi Navi Veloci (GNV), already dominates the market.

The authority said that the ferry services on these routes are already highly strong, with Moby and GNV being the primary operators and, in some cases, a third competitor.

The market has major entry barriers, raising concerns about reduced competition and higher prices for passengers and cargo.

Along with the share purchase, the antitrust authority is also investigating a €243 million loan given by MSC’s Shipping Agencies Services (SAS) to Moby in 2023.

The financing deal is seen as another factor that could impact the market dynamics and limit competition.

The probe also included inspections at the offices of Moby, GNV, Onorato Armatori (Moby’s majority owner), and Marinvest (MSC’s investment branch), all of which were conducted last week.

GNV said that it fully cooperated with authorities during the inspection, while Moby and its parent company, Onorato Armatori, did not reply to requests for comment.

MSC’s acquisition of a stake in Moby was to save the struggling ferry operator from bankruptcy. In 2022, Moby was on the brink of bankruptcy due to financial difficulties and an inability to repay debts.

MSC and Moby’s majority shareholder, Onorato Group, agreed on a deal in which SAS required a 49% stake in Moby for €150 and the €243 million loan.

In January 2024, MSC also purchased two RoPax ferries from Moby for an additional €109 million.

This acquisition is not a single case. MSC has been expanding its operations aggressively, with many recent acquisitions, including car carrier Gram Car Carriers.

The company also plans to acquire a 49% stake in Hamburg’s port operator, HHLA, with all required approvals in place.

Reference: Reuters