DFDS completes Tangier Med purchase and adds a third ferry
DFDS completed its acquisition of Naviera Armas’ Algeciras–Tangier Med operations for 165 million Danish kroner. The Spain–Morocco route gains a passenger and freight ferry, permits and around 200 employees. The vessel is scheduled to join the service in mid-November. DFDS abandoned a separate Ceuta acquisition after Spanish competition requirements went beyond the agreed conditions.
Economics & Markets··Morning
DFDS gains a third Spain–Morocco ferry
DFDS, the Copenhagen-based ferry and logistics operator, completed its purchase of Naviera Armas’ activities between Algeciras in Spain and Tangier Med in Morocco. Competition authorities in both countries approved the transaction. The acquired operations include a passenger and freight vessel, operating permits and the transfer of around 200 employees.[1], [2]
The Volcán de Tamasite ferry is scheduled to join DFDS’ two existing ferries on the Strait of Gibraltar service in mid-November. It has operated on the route for several years. The vessel carries up to 1,469 passengers and provides 1,414 lane metres for vehicles and cargo. Lane metres measure the linear deck space available for loading wheeled freight.[2]
The purchase expands freight capacity
The purchase price is 165 million Danish kroner. DFDS will integrate the acquired activities with its existing Algeciras–Tangier Med operation. A separate component increases its share of capacity on a jointly operated freight ferry from 33% to 50%. The acquired passenger and freight ship was built in 2004.[1]
DFDS operates more than 10,000 annual sailings across its routes in the strait. Cargo includes fresh produce, automotive components, textiles and industrial goods. Chief executive Michael Hansen said the added vessel would increase capacity and flexibility for freight customers and passengers. Local managing director Ronny Moriana Glindemann linked the expansion to the company’s expectations of future demand.[2]
The acquired ship is a RoPax ferry, a type that combines passenger travel with wheeled freight. The other vessel included in the capacity arrangement is a RoRo freight ferry, which loads vehicles by rolling them aboard. DFDS’ larger share on that joint vessel is distinct from its addition of Volcán de Tamasite.[1]
Ceuta purchase stops at competition conditions
DFDS will not proceed with its separate planned acquisition of Naviera Armas’ Algeciras–Ceuta operation. It said the Spanish competition authority’s requirements exceeded the agreed conditions. The company maintained its annual capital expenditure outlook at 1.7 billion Danish kroner, expecting acquisition spending to be offset by lower operating capital expenditure. Adjusted free cash flow guidance also remained unchanged; acquisition expenditure is excluded from that measure.[1]
The Ceuta agreement depended on the scope of restrictions imposed by competition authorities. DFDS attributed its decision to abandon that purchase to the Spanish regulator’s conditions. The company is headquartered and listed in Copenhagen. Its European transport network combines ferry services with road and rail connections.[1]
