Eurotunnel Regretfully Sells MyFerryLink to Denmark's DFDS

In a statement on Sunday, Groupe Eurotunnel SE (Eurotunnel) announced that it will sell its MyFerryLink Calais-to-Dover ferry business to DFDS for an undisclosed price due to antitrust action.

"The Group, which regrets that the SCOP SeaFrance has not had the support it needed to be able to present a takeover proposal, confirms that it holds a binding offer from DFDS for a let to buy sale of the ferries, Rodin and Berlioz," Eurotunnel said.

Eurotunnel's move into the ferry market with its 2012 purchase of the former SeaFrance ferries from French rail operator SNCF has been the focus of Britain's Competition and Markets Authority (CMA).

"The CMA should not oppose the completion of this sale which will lead to two maritime operators of equal importance," Eurotunnel noted.

A tribunal earlier this year ruled that Eurotunnel should cease ferry operations because it is too dominant in cross-channel traffic.

Even though a British court subsequently contradicted the tribunal and cleared the way for continued operation, Eurotunnel announced on May 28 its intention to sell because it feared the CMA would continue its campaign.

In light of the overall situation, Eurotunnel said the sale to DFDS was the best solution.

"The Eurotunnel Group believes that the constructive manner in which DFDS conducted itself during the recruitment of ex SeaFrance personnel in 2012 gives hope for the best solution possible with regard to preserving employment, without interruption to services," it said.

DFDS, whose shares hit a record high after Eurotunnel's decision to sell, has reportedly been losing $1.6 million per month as a result of competition from MyFerryLink.