Approval for DFDS takeover of Norfolk

Danish shipping company gets conditional go-ahead to merge with UK company.

The European Commission approved today (18 June) Danish shipping company DFDS’s takeover of  Norfolk, a UK shipping firm.

The Commission’s approval of the merger, however, was conditional upon DFDS accepting to share space on its vessels with rival companies on voyages between the UK and Denmark.

DFDS and Norfolk both operate passenger and freight shipping services in western and northern Europe. DFDS notified the proposed takeover to the Commission in April.

The Commission was concerned that the merged company would have a near monopoly in the roll-on roll-off shipping market between Denmark and the UK. Roll-on, roll-off (Ro-Ro) shipping is the carriage by boat of cars, trucks and other wheeled transport that drives on and off the boat.

Norfolk currently has an agreement with DFDS that allows it to purchase space on the Danish company’s vessels. The Commission was concerned that the merger would make this agreement defunct, leaving the combined firm in control of the market.

DFDS agreed, in discussions with the Commission, to conclude a space-sharing agreement with a rival company that it similar to one it currently has with Norfolk.

This will allow the emergence of another competitor that will market the space, including to Norfolk’s current customers, the Commission said.

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The Commission said that this step would “sustain the current market situation”.