The Spanish company Baleària is still seeking to acquire the assets of the shipping company Armas Trasmediterránea, amid concerns about declining competition and rising prices on sensitive maritime routes, including the route between Spain and the city of Melilla and navigation to the Canary Islands.
For its part, the Spanish competition authority (CNMC) has placed this potential deal under the second phase of scrutiny since the beginning of January. This is after it concluded that the commitments provided by Baleària may not be sufficient to prevent potential coordination among companies that previously operated together. Especially on the Huelva–Canarias route, which the company operates in collaboration with Fred Olsen.
In an attempt to overcome this, Baleària has provided proposals to address competition concerns, such as ending its current partnership with Fred Olsen on the Huelva–Canarias maritime route and transferring operating licenses to the partner.
Baleària has also proposed to transfer temporary operating assets that include offices, licenses, equipment, and cargo units to Fred Olsen. It would allow the use of its electronic booking systems for market fees until April 2026, providing Fred Olsen a period to launch its own system.
Despite these measures, the CNMC believes that the deal may create an environment conducive to coordination between companies after implementation. This necessitates continued analysis in the second phase.
The deal raises particular concern regarding the southern Spanish peninsula–Melilla route, where Baleària would become the almost sole operator. This creates a potential monopoly that could lead to price increases, reduced service quality, and fewer trips.
Even after Baleària announced its abandonment of operating the route under the previous license, the CNMC believes that this may not be enough to address the risks. Especially for Moroccan travelers who rely on these maritime links.
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