Is the love between Stx and Fincantieri softening?
What is happening between Chantiers de l'Atlantique (formerly Sts France) and Fincantieri. Facts, times, indiscretions and scenarios
Sale of Chantiers de l'Atlantique (formerly Stx France of which 84.3% in the hands of the French state) to Fincantieri postponed to the end of the year.
In fact, on 31 October the Trieste group's offer to buy back the shipyards of Saint-Nazaire expired. Meanwhile, the chairman of the French Senate Economic Affairs Committee has warned about the risks of technology transfers to China, a partner of the potential buyer.
Not only that, Fincantieri's offer for the former Stx is also awaiting (still) the approval of the EU antitrust. In fact, last October the European Commission launched an in-depth investigation to evaluate the operation in light of the EU merger regulation. After the solicitations of the governments of Paris and Berlin.
According to the Italian and French press, the French state, Naval Group and Fincantieri have agreed to postpone this deadline to 31 December 2020.
All the details.
TRANSACTION POSTPONED TO THE END OF THE YEAR
New deadline for the alliance between the shipyards of Saint-Nazaire and those of Trieste. A few days before the deadline set for 31 October to seal the transaction, the French State (84.34% of the share capital), Naval Group (11.67%) and Fincantieri have agreed to postpone this deadline to 31 December 2020.
According to the French newspaper Le Figaro, the new term comes "to allow time for the European Commission to decide" on the passage under the Italian flag of the cruise ship builder.
Under the agreement signed three years ago, the French state should sell 50% of the capital to Fincantieri and lend him 1% of the capital for a period of twelve years.
THE FRENCH WARRANTY
Everything is played in this 1% of capital. “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 series 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 the workforce", explained a government source in Le Parisien .
THE FEARS OF THE EU COMMISSION
Furthermore, Fincantieri risks not obtaining the green light from the European Antitrust for its offer to acquire the French shipyards due to the difficulties in offering concessions that eliminate the problems linked to competition.
In October 2019, the European Commission decided to launch an in-depth investigation. In fact, the EU antitrust authorities fear that the agreement between two world leaders in a market that is already concentrated and limited by capacity could drive up the prices of cruise ships.
The divestiture of Chantiers de l'Atlantique is also attracting strong criticism from cruise giants Carnival and Royal Carribean and unions.
THE ALARM LAUNCHED BY THE FRENCH SENATE
The French fears of the transfer of technological sovereignty weigh on the sale of the former Stx to Fincantieri.
In a recent report, the Paris Senate highlighted the risks for employment in France, but also for China's acquisition of sophisticated technologies from French shipyards. This, through the joint venture established by Fincantieri with the Chinese CSSC, in cruise ships. 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. Therefore, a transfer of technologies, civil but also military, to Asia is to be feared.
The Senate therefore urged the government to "think of another industrial plan" and "not to make strategic mistakes" by selling the yards in Saint-Nazaire.
IN THE MEANING, GO FORWARD WITH NAVIRIS
Yet the merger that does not sail for the civilian sector seems to work for the defense. In fact, in January the Naviris joint venture for the military sector was launched, between Fincantieri and Naval Group , shareholder of 11.7% of the Saint-Nazaire site. “This allows us to pool part of the supply and research and development,” explained a Naval Group executive in Le Parisien. “But also to respond jointly to international calls for tenders”.
THE DIFFICULTIES IN THE SECTOR ARE HAPPENING ON BRUSSELS
According to Repubblica , "Brussels also has to deal with the difficulties of a sector in which many shipowners have their fleets at a standstill except for those operating on the national territory such as MSC and Costa Cruises who have resumed sailing, while the builders have reviewed their plans , as did Fincantieri too. The group has so far not recorded any cancellations of orders and has just delivered the second ship since the beginning of the emergency (Silver Moon) ”.
Even "the Chantiers, who have orders to work at full capacity until 2026, have not received any cancellations in recent months," La Stampa stressed.
All that remains is to wait until December 31 to attend the operation or yet another postponement.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/lamore-tra-stx-e-fincantieri-si-sta-ammosciando/ on Mon, 02 Nov 2020 13:44:04 +0000.