EC clears CFL Cargo transaction
The European Commission has approved the proposed joint acquisition of CFL Cargo by Luxembourg railway SNCFL and carbon steel products specialist Arcelor Profil Luxembourg.
CFL Cargo is now free to take over all railway transport of goods provided by SNCFL’s subsidiaries EuroLuxCargo; Neg Uetersen, based in Germany; and Denmark’s Dansk Jernbane Aps, as well as the internal transport of Arcelor Profil and Arcelor Rodange. Container transportation will not be handled by CFL Cargo, although it could offer traction services as a subcontractor to container companies.
“The proposed acquisition would create a vertical link between Arcelor and CFL Cargo, which could affect the market for railway transport of goods in Luxembourg,” the EC said.
“However, the proposed transaction would not raise concerns about the supply of railway transport services as the joint venture would continue to serve the ex-SNCFL customers. In addition, in the context of the ongoing process of railway liberalization, competitors of SNCFL expressed during the market investigation their intention to start operating on the Luxembourg market.”