The European Commission said on Tuesday it would closely investigate the proposed acquisition of STX France by Italy’s Fincantieri.
“The Commission considers that the transaction could harm competition at European and global level,” the European Union’s executive organ said.
The Commission, which acts as the EU’s competition watchdog, said it was particularly worried about the significant, negative effects the deal could have on the global cruise ship market.
A “full” and “exhaustive” investigation will follow, the Commission said.
Its concerns, however, were no prejudice to the outcome of the “full” and “exhaustive” investigation that will follow, the Commission added.
The Brussels-based Commission said it intervened on a request by authorities in France and Germany, whose permission was needed for the deal to go through.
Fincantieri, Europe’s largest shipbuilder, is ultimately controlled by the Italian state.
Chantiers de l’Atlantique, based in Saint-Nazaire, is itself majority-owned by a French state agency.
Ministers from the two countries recently pledged to push through the merger, which would see Fincantieri control half of STX France.
France would retain a 34.34% stake and Naval Group, formerly DCNS, 10%. STX France would hold 2% and the yard’s local suppliers 3.66%.
