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Europe / Ferries/Cruise
Brittany looks at SeaFrance
By Doug Newhouse, 18 March 2009
French ferry operator Louis Dreyfus Armateurs has withdrawn its offer to buy SeaFrance after the French state railway (SNCF) parent confirmed that it prefers an approach from Britanny Ferries to buy the company's eight ships which carried 2.7m passengers last year. If this goes ahead it could potentially create a new $80m to $90m travel retail operation.
Earlier this month Brittany Ferries denied that it was interested in taking over SeaFrance, although it has since created a new holding company as a vehicle to make its move, which would see Brittany take 75% of SeaFrance for around E.62m ($81m), leaving the remaining 25% in the hands of SNCF.
If it is successful, Brittany Ferries is now saying that 'a merger' between it and SeaFrance could potentially create sufficient critical masse for it to be in a position to compete with P&O Ferries on the world's busiest sea route between Dover-Calais.
At the same time, any merger would create - on paper - a new ferry force with travel retail buying power of between $80m to $90m, considering SeaFrance generates around $50m and Brittany Ferries slightly less at approximately $40m. This compares with the $100m-plus travel retail sales turnover that P&O Ferries generates.
But not everyone is happy with the new plan, with unions estimating that it will cost 400 jobs if the merger goes ahead. SeaFrance already cut 650 jobs last year after it reported losses of E.20m ($26m) and it has since admitted that it is losing E.3m ($4m) a month.
This would seem to indicate that the vast majority of any sale amount – if it goes ahead - will effectively go towards wiping out SeaFrance's increasing debt.
By Doug Newhouse, 18 March 2009
French ferry operator Louis Dreyfus Armateurs has withdrawn its offer to buy SeaFrance after the French state railway (SNCF) parent confirmed that it prefers an approach from Britanny Ferries to buy the company's eight ships which carried 2.7m passengers last year. If this goes ahead it could potentially create a new $80m to $90m travel retail operation.
Earlier this month Brittany Ferries denied that it was interested in taking over SeaFrance, although it has since created a new holding company as a vehicle to make its move, which would see Brittany take 75% of SeaFrance for around E.62m ($81m), leaving the remaining 25% in the hands of SNCF.
If it is successful, Brittany Ferries is now saying that 'a merger' between it and SeaFrance could potentially create sufficient critical masse for it to be in a position to compete with P&O Ferries on the world's busiest sea route between Dover-Calais.
At the same time, any merger would create - on paper - a new ferry force with travel retail buying power of between $80m to $90m, considering SeaFrance generates around $50m and Brittany Ferries slightly less at approximately $40m. This compares with the $100m-plus travel retail sales turnover that P&O Ferries generates.
But not everyone is happy with the new plan, with unions estimating that it will cost 400 jobs if the merger goes ahead. SeaFrance already cut 650 jobs last year after it reported losses of E.20m ($26m) and it has since admitted that it is losing E.3m ($4m) a month.
This would seem to indicate that the vast majority of any sale amount – if it goes ahead - will effectively go towards wiping out SeaFrance's increasing debt.
News related to "SeaFrance;Brittany Ferries"
• Travalo in new ferries deal
(22 May 2010)
• Ash fallout: ferries gain from UK airports' loss (21 April 2010)
• Ferries and trains benefit (17 April 2010)
• SeaFrance workers go back to work (8 April 2010)
• SeaFrance strike continues (6 April 2010)
• Ash fallout: ferries gain from UK airports' loss (21 April 2010)
• Ferries and trains benefit (17 April 2010)
• SeaFrance workers go back to work (8 April 2010)
• SeaFrance strike continues (6 April 2010)
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• Novo debuts inflight solution (17 March 2009)
• Serbia asks IMF for $2.5bn (17 March 2009)
• Decline in Spain hits Autogrill (14 March 2009)
• Gatwick 'bidders' get another month (14 March 2009)
• ACI underlines 'contributions' (14 March 2009)
• Heathrow T5 finds its soul (14 March 2009)
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