The French Competition Authority authorized the SNCF acquisition of Novatrans subject to strict conditions to limit the SNCF market power
In conditionally clearing the SNCF acquisition of Novatrans, the French Competition Authority (ADLC) has imposed a number of stringent conditions that should adequately address the risk of SNCF extending its market power from rail transport to into contiguous markets. SNCF is the French incumbent rail operator and owns Naviland Cargo, which is the main operator of combined rail-maritime transport and manages several terminals for this type of transport. By the notified operation, SNCF acquired exclusive control of Novatrans, the leading combined rail-road transport operator and manager of main terminals. Because post-merger SNCF would be active in all the stages of the combined merchandise transport chain, the ADLC considered that the merger was likely to create competition problems in three markets: the market for railway services for combined transport operators, the market for terminal services and the market for road-rail combined transport services. The market for railway servi