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EU opens in-depth probe in Danish shipper takeover

Published 06/12/2009, 12:04 PM
Updated 06/12/2009, 12:10 PM
DSV
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BRUSSELS, June 12 (Reuters) - European Union regulators launched an in-depth investigation on Friday into plans by Danish shipper Vesterhavet and freight forwarder DSV to take joint control of shipping company DFDS.

DSV is the leading freight forwarder in Scandinavia, while DFDS is the leading shipping company providing Roll-on/Roll-off (Ro-Ro) shipping services in northern Europe, the European Commission said in a statement.

The Commission, antitrust watchdog of the 27-nation European Union, said an initial market investigation had shown that the proposed transaction could significantly hamper competition.

"We must ensure that freight forwarders will continue to have access to transport on Ro-Ro vessels, so that final customers will not suffer price increases," EU Competition Commissioner Neelie Kroes said in the statement.

The Commission said the deal could have potential adverse effects on other freight forwarders in terms of price and access to some Ro-Ro shipping service routes.

The EU watchdog said it had 90 working days to make a final ruling, adding that the decision to open an in-depth probe did not prejudge the result of the investigation.

The in-depth investigation will assess whether the transaction would increase the costs of, or limit access to, Ro-Ro shipping services for other freight forwarders, and as a consequence, harm consumers.

Commitments offered by DSV and Vesterhavet aimed at removing competition concerns during the preliminary investigation proved insufficient, the Commission said. (Reporting by Bate Felix; Editing by Dale Hudson)

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