The Spanish competition authority, CNMC, is conducting a detailed investigation into Baleària's acquisition of certain assets from its competitor Armas in the Alborán, Estrecho, and Canary Islands regions. This follows an initial phase where potential competition risks were identified due to the high concentration that would result from the merger.

In the initial analysis, CNMC found that if the acquisition proceeds, Baleària could become the sole operator on several routes, leading to a monopoly situation. Specifically, in the Alborán region, Baleària would strengthen its position as the main operator with minimal competitive pressure, while in the Canary Islands, it would consolidate its status as the only shipping company.

Additionally, the Estrecho region is under scrutiny due to a separate operation by DFDS that overlaps with Baleària's acquisition. If both operations are approved, the number of shipping companies servicing the Algeciras-Tánger Med route would decrease from four to three, raising further competition concerns.

The identified risks include potential price increases, reduced service quality, and fewer service frequencies, particularly on routes without public service obligations. The CNMC is particularly concerned about the implications for public tenders, as the number of participating shipping companies would drop significantly.

Baleària has proposed commitments for the Canary Islands region and has renounced its license for the Nador-Almería route. However, the CNMC believes these measures are insufficient to mitigate the identified risks, necessitating a more in-depth analysis in the second phase. The authority may request additional information from the operators involved, and interested parties can submit their comments to protect their interests.

The final resolution could either authorize the acquisition, impose conditions, or prohibit the merger altogether.