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Stena Line cleared over Irish Sea ferry routes

Date: 02 Jun 2011 15:00 Source: Irishtrucker

Stena Line’s acquisition of two Irish Sea ferry services and the closure of a third has been provisionally cleared by the UK Competition Commission.

Late last year, Stena Line bought the Belfast to Liverpool and Heysham routes for £40 million from DFDS, while it opted to close its Fleetwood to Larne route.

Following the closure of the route there were concerns that the decision was influenced by the takeover and the CC decided to investigate the matter.

CC Deputy Chairman and Chairman of the Stena/DFDS inquiry group Peter Davis said: "We came to the view that Stena’s withdrawal from [the Fleetwood-Larne route] was probably inevitable, irrespective of the acquisition."

"The implication for this case is that there was no loss of direct competition between the longer, ‘diagonal’ routes across the Irish Sea resulting from the acquisition.

"Nonetheless, we went on to examine whether the acquisition meant a loss of competition between the former DFDS routes and Stena’s other services on the Irish Sea.

"We have, provisionally, found that not to be the case, since the evidence suggests that competition between these more distant routes is more modest, and in any event, Stena will continue to face a direct competitor in each of the corridors in which it operates following the acquisition. In consequence, we do not expect that the acquisition has resulted in a substantial lessening of competition."

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