The Portuguese Competition Authority (Autoridade da Concorrência – AdC) has announced its decision to prohibit the merger involving the Boluda Group's acquisition of Remolcanosa Portugal – Serviços Marítimos, S.A. The authority determined that the merger would significantly impede competition in the maritime towage market, particularly in the Port of Sines.

The investigation revealed that the merger would eliminate the only effective competitive constraint in a market characterized by high barriers to entry. This would transform the existing asymmetric duopoly into a monopoly, allowing the merged entity to exert market power, particularly through price increases, adversely affecting users of these services.

During the review process, the AdC evaluated two sets of commitments proposed by the Boluda Group to alleviate the competition concerns. However, the authority concluded that these commitments were inadequate and posed significant risks regarding their effectiveness and feasibility.

Additionally, the AdC considered external factors presented by the notifying party, such as the potential end of the current concession at the Port of Sines and the initiation of a new tender process. However, these factors were deemed uncertain and insufficient to mitigate the identified competition issues.

Ultimately, the AdC's decision to prohibit the merger was based on the likelihood of significant competition impediments and the absence of effective remedies to address these concerns.