Strintzis, Anek to merge?
Ferryboat operators Strintzis Lines and Anek Lines yesterday said they are holding exploratory talks on a possible merger of the two companies in a move suggesting that the industry is taking action to adapt to new market conditions expected to arise from the abolition of cabotage in November. Strintzis Lines said in a statement that the board of directors of both companies «examined today the prospect of a merger and agreed to explore further the financial, legal and business aspects of such an initiative.» It said Piraeus Bank is mediating between the two companies. Analysts said the passenger shipping industry needs to consolidate if companies want to survive the intense competition expected next year as Greece deregulates the sector, two years ahead of a European Union deadline. Following the sinking of the ferry boat Express Samina in 2000 with the loss of 80 lives, the government decided to open up the sector earlier in the hope that a free and more competitive market would spur companies to upgrade their operations and lead to safer and improved island travel. «None of the passenger shipping companies could survive on their own when cabotage is lifted in November,» said a shipping journalist. The industry is currently dominated by Crete-based Minoan Lines with Strintzis and Anek bringing up the rear. However, a merger between Strintzis, which is 49-percent controlled by Attica Enterprises, and Anek could solve the problem of finding funds to finance an ambitious shipbuilding program for both. Emboldened by the stock market boom in 1999, ferry boat operators announced a slew of orders for new vessels. But the prolonged market slump left many stuck with craft for which they did not have the means to pay, forcing some to take out bank loans. Strintzis took delivery of three newbuildings in 2000, while four new vessels are expected to join the fleet this year. Anek boosted its fleet with two newbuildings in 2000. Another shipping journalist said that while consolidation is needed in the industry, a merger involving Strintzis and Anek makes little sense in view of the different corporate philosophies at the two companies. «I can’t see the logic behind the merger move,» the journalist said. A successful merger between Strintzis and Anek could pose a powerful threat to market leader Minoan, which has seen its image and market share deteriorate in the wake of the Express Samina tragedy, a vessel belonging to its subsidiary Minoan Flying Dolphins, which has since been renamed Hellas Flying Dolphins.
