Spain's National Commission on Markets and Competition (CNMC) has granted second-phase approval for Baleària to acquire sole control of specific assets from the shipping company Armas Trasmediterránea.
These transactions involve regular maritime transport for Ro-Ro cargo and passengers across routes in the Southern Peninsula-Strait of Gibraltar and the Peninsula-Canary Islands.
The regulator identified competition risks regarding the Canary Islands acquisition that necessitated specific commitments from Balearia, whereas the Strait of Gibraltar operation was cleared without such requirements.
This authorisation remains subject to review by the Minister of Economy, Trade and Business, who may submit the decision to the Council of Ministers for further assessment.
The CNMC stated that the purchase would create a monopoly for regular maritime transport of cargo and passengers on the Peninsula-Canary Islands route.
Without the agreed commitments, the regulator warned of potential reductions in service quality or frequency and possible price increases for freight and passenger transport on routes lacking public service obligations.
To address these concerns, Balearia agreed to dissolve a joint ownership agreement with Fred Olsen that previously covered the Huelva to Canary Islands route. The shipping company also committed to maintaining current capacity and frequencies that exceed existing public service requirements for the Peninsula to Canary Islands service.
Balearia stated it is focused on a planned investment of €25 million ($27 million) over three years to improve the fleet acquired from Armas. The company confirmed it would maintain the entire workforce transferred from Armas and continue to operate the vessels under the Spanish flag.
The commitments include a requirement for Balearia to reactivate the maritime route between Morro Jable and Las Palmas, which Armas had previously stopped operating.
The CNMC remarked it will monitor price levels implemented by Balearia and oversee compliance with all conditions for a general duration of three years.
For the Strait of Gibraltar region, the regulator concluded that no risks to competition exist following a separate second-phase investigation. This specific part of the acquisition was authorised without the need for additional commitments or operational changes by Balearia.