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Further ferry merger row

16th October 1997
Page 10
Page 10, 16th October 1997 — Further ferry merger row
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Which of the following most accurately describes the problem?

• Uncertainty over the future of cross-Channel services looks set to continue because of a legal row between the competition authorities over the proposed P&O/Stena ferry merger.

Officials at the UK Department of Trade and Industry are in favour of blocking the proposed deal between the ferry giants on their Dover-Calais, Dover-Zeebrugge and Newhaven-Dieppe routes because they believe the merger would not be in the public interest.

But the European Commission in Brussels, which theoreti

cally has the final say on the deal, appears to be in favour of allowing the move because it believes the threat from the Channel tunnel is so great that it could kill off the short-sea ferry routes within 10 years.

Hauliers and trade associations are also split: many fear a merger would herald higher fares and fewer services.

If the competition authorities deliver differing verdicts the UK Government might challenge the Commission's ruling at the European Court of Justice.


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