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EC could block ferry mergers

24th October 1996
Page 10
Page 10, 24th October 1996 — EC could block ferry mergers
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Which of the following most accurately describes the problem?

by Karen Miles • Plans by the major ferry operators to merge services on their short sea and western Channel routes could be blocked by the European Commission.

P&O and Stena want to team up on their DoverCalais, Dover-Zeebrugge and Newhaven-Dieppe routes: P&O and Brittany Ferries could also come to an arrangement over their western England routes to France and Spain.

But P&O, Stena and Brittany will have to clear their deals with the Commission and they can expect to receive a "very bumpy ride" with only a 50% chance of success, according to a Commission source.

Hauliers fear that any mergers on the Channel would result in fewer services on fewer routes with higher prices, although the ferry companies deny this. C Next week the EU's 15 Commissioners are expected to rule on whether P&O, Stena, Brittany Ferries, North Sea Ferries and SNAT broke European competition law when they all imposed a 10% freight surcharge in November 1992. If the Commissioners find against the companies they could face fines.