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Eurotunnel’s ferry plans referred to UK competition watchdog

[ October 29, 2012   //   ]

The UK’s Office of Fair Trading (OFT) has referred Eurotunnel Group’s planned acquisition of former ferry operator, SeaFrance to the country’s Competition Commission for further investigation, over concerns that the merger could substantially reduce competition on the Channel. Eurotunnel is planning to buy three former SeaFrance ships and operate as MyFerryLink

The OFT said that while it recognises that the new service provides benefits to passengers by replacing capacity on the Dover to Calais route which was lost when SeaFrance went into liquidation, “there is some evidence that an alternative buyer would have acquired the business, had Eurotunnel not done so.”

OFT is concerned that prices for freight and passengers may increase as a result of the deal.

The Competition Commission is expected to report by 14 April next year.

 

 

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