Spain’s National Markets and Competition Commission (CNMC) has initiated an in-depth, “second-phase” analysis of the acquisition of several Naviera Armas assets by the Danish shipping group DFDS. The regulator warned that the deal, which focuses on the strategic Strait of Gibraltar region, could significantly reduce competition for both cargo and passenger transport.
The investigation centers on the shipping routes connecting the southern Spanish peninsula with Tangier (Morocco) and Ceuta. Both DFDS and Armas currently compete in these markets, and the CNMC’s initial analysis suggests the merger could trigger a “significant modification of the market structure.”
On the Algeciras–Tangier Med route, the situation is complicated by an overlapping bid from another competitor, Baleària. If both transactions proceed, Armas would exit the market entirely, reducing the number of active shipping operators from four to just three. Even more stark is the impact on the Algeciras–Ceuta corridor. In this specific route, the merger would see DFDS absorb its primary competitor, leaving only two operators—DFDS and Baleària—in the market.
The CNMC expressed particular concern regarding Public Service Obligations (PSO). Currently, DFDS and Armas are the only two operators providing services to Ceuta under these regulated terms. By acquiring Armas’s assets, the Danish group would eliminate Armas as a potential bidder for future government contracts, creating a “risk for competition in the market” and potentially leaving the state with fewer options for essential transportation links.
The regulator noted that such a high level of concentration could lead to “unilateral horizontal effects” and “coordinated effects,” where a lack of competition makes it easier for remaining players to raise prices or lower service quality. The transition to “Phase Two” allows the CNMC to conduct a more granular audit of the market. While this step does not “prejudge the conclusions” of the investigation, the final resolution could range from authorizing the deal with specific conditions to a total prohibition of the asset transfer.