Fincantieri, what happens between Italy and France on Stx
The situation between Italy and France on the Fincantieri-Stx dossier. Facts, reconstructions and comments
Agreement saved in extremis by Paris at the moment.
The French government has granted Fincantieri, controlled by Cdp Industria, an extension of one month to finalize the acquisition of Chantiers de l'Atlantique (formerly Stx). This was announced on December 30 by the Ministry of Economy of Paris, while the offer would expire on December 31, 2020.
The request was accepted by the Trieste shipbuilding group. Now the word is once again given to the Brussels DG Comp, the European competition authority.
Here is the point of the situation.
THE ACQUISITION OF THE CHANTIERS DE L'ATLANTIQUE
The French government, which holds an 84% stake in the Chantiers of Saint Nazaire, therefore took the first step, as anticipated by Liberation and confirmed by France Press : to extend the terms for the final agreement by one month.
Fincantieri signed an agreement in February 2018 for the purchase of 50% of the shares of Chantiers de l'Atlantique from the French state for 59.7 million euros.
Plus a 1% loan from the French government with the clause to repossess it in case of non-compliance with the agreement by the buyer.
THE 1% GUARANTEE IN PARIS HANDS
The strategic issue has aroused opposition at the local level, especially among trade unions.
Precisely for this reason, the French prime minister insisted on the famous 1% of the capital that the state will lend to Fincantieri. “A quota that [the French state] could withdraw at any time if the Italian manufacturer fails to fulfill its commitments, or if the site is threatened. This offers a number of guarantees. That he will be able to take it back, if the Italians do not respect the commitments made, including on the maintenance of manpower ”, explained a government source in Le Parisien .
The French government – currently the majority shareholder of Chantiers de l'Atlantique – said the merger agreement provides guarantees to protect the French yard and its suppliers and to avoid the transfer of know-how to third countries.
THE NODE OF THE EU ANTITRUST
In October 2019, the Commission launched an in- depth investigation into Fincantieri's purchase of 51% of Stx, fearing that the merger could restrict competition in the civil shipbuilding sector, in particular as regards cruise ships. with negative effects for final consumers.
The agreement is strategic, as the construction of large cruise ships is still a European prerogative in the face of Asian competition. Three yards share the market: Chantiers de l'Atlantique, Fincantieri and the German Meyer Werft.
The French antitrust, with the German one (interested in defending its Meyer Werft yards), turned to Brussels.
CLOCK STOPPED IN BRUSSELS
However, the European Commission has “stopped the clock” of the investigation launched on the acquisition of Chantiers de l'Atlantique, formerly Stx France, by Fincantieri “on March 13th. And the clock stands still ”. This was explained by a spokeswoman for the Commission. This procedure, known as 'stop the clock' in Community jargon, is activated "if the parties do not provide, in a timely manner, important information that the Commission has requested of them".
According to what is learned in Brussels, the position of the Commission has always been the same, for months: the DG Comp has expressed doubts about the operation, due to its effects on competition, and has asked the parties to provide information. Not having received them in time, he stopped the clock of the procedure on March 13 last.
THE FRENCH DOUBTS
In addition to the Brussels node, in recent months other unknowns had been added beyond the Alps with the French Senate which had expressed concern about the employment levels of local yards and the risk of a transfer of know-how to China in light of the joint-venture signed between Fincantieri and China State Shipbuilding Corporation.
Since 2016, a partnership with the latter has in fact allowed Fincantieri to build liners directly on its shipyards in Shanghai, on behalf of American Carnival, the world's leading cruise company. We therefore fear a transfer of technologies, civil but also military, to Asia.
THE NEW REQUESTS FROM THE EU COMMISSION
Meanwhile, Wednesday also leaked some indiscretion: among the latest requests that DG Comp would have made to the parties involved, according to Ansa , there would be that of outlining a scenario of the post-pandemic cruise market.
FINCANTIERI'S POSITION ON THE EXTENSION FOR THE PURCHASE OF THE EX STX
In a note released on the afternoon of 30 December, Fincantieri reiterated that as regards the industrial aspect, the dossier is complete: "We have provided all the clarifications requested by Brussels, the dossier is confirmed as political in nature", hinting that it is the European competition that has to take responsibility for deciding: “It will have to answer to the two states”.
The reference is to the joint letter of Italy and France to the European Commission announced by the Minister of Economic Development, Stefano Patuanelli.
THE COMMENT OF THE SUN 24 HOURS
“The word, therefore, is now, more than ever, in the hands of Brussels”, underlined Il Sole 24 Ore . “Among the latest information that the DG would have requested from the Competition, there would be to outline the impact of the Covid-19 pandemic on the cruise market. A request considered singular since the scenario, with the pandemic still underway, is still very uncertain and cannot be delineated by the players in the sector. Certainly, it is implied, a strong subject, “a European shipbuilding champion” could better deal with the post-pandemic situation and the consequences on a sector that is currently stopped. But at the same time, faced with a rejection of Brussels, perhaps no one would wrap their heads ”.
THE TRUTH: "A STRONG INTERVENTION OF THE MINISTER GUALTIERI IS EXPECTED"
“The reality is that we would have expected a strong intervention from Minister Roberto Gualtieri, shareholder of Fincantieri”, commented Claudio Antonelli in La Verità . “The Italian management denies the assertions made by the Parisian government. That is, the information has all been sent and therefore no further extension is needed. If Gualtieri does not defend Fincantieri's position it means that he is on Emmanuel Macron's side. Tertium non datur ".
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/fincantieri-che-cosa-succede-tra-italia-e-francia-su-stx/ on Sat, 02 Jan 2021 06:44:55 +0000.