Two of Greece`s largest ferry lines merge, more mergers to come

A coastal shipping giant was created last week when Attica Enterprises, owner and operator of Superfast Ferries, announced the purchase of 38 percent of the stock of Strintzis Lines, one of its rivals on the Greece-Italy ferry route. Strintzis` shareholders will receive a stake in the share capital of Attica Enterprises.
The two companies have a combined fleet of 16 vessels and have another 11 new ferries are on order for a total of 27.
Both companies said the deal allows expansion on domestic and international routes – both lines operate the Greece-Italy route but only Strintzis has rights to operate domestic routes. They also expect to increase profits by taking advantage of economies of scale and size as well as the synergy that will occur at all levels of operation.
Superfast, with all new vessels, had continually denied that it was interested in cooperation agreements with other Greek lines. Its executive director had stressed on numerous occasions that his company`s strategy was to constantly upgrade ships so as the fleet would continue to be the newest and most modern in the Mediterranean. However, again this year the company`s applications to the Greek state for rights to sail the country`s protected domestic routes were not approved.
The merger will be finalized after completion of due diligence and a share capital increase by Superfast. Strintzis is guaranteed 10% of the capital increase shares. Once the deal is finalized, Attica expects five seats on the Strintzis nine-member board, and will seek approval from its own shareholders to increase its five-member board to seven so as to include two members of the Strintzis family.
The fleet of the two companies include 16 ships, four are super-fast ferries owned by Attica, and Strintzis owns 10 large ferries and two catarmaran-type passenger-only ferries. The two companies have 11 large ferries on order worth in excess of $1 billion, including six new super-fast ferries ordered by Attica. All are due for delivery within the next 24 months. When delivered, the companies` total fleet will number 27.
The merger<.> follows similar moves earlier this year by Anek Lines of Crete, which signed merger agreements with the Crete-based ferry lines Lane (one vessel) and Cretan (two vessels), 50% of Rhodes-based Dane Lines, and 20% of Nel Lines, of Lesvos. Rumor has it that Anek is now in talks with the other major player in the coastal shipping sector, Minoan Lines, as well as smaller lines that include Agapitos and Agoudimos.
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