Italy proposes European yard merger

Italy’s deputy transport minister Cesare De Piccoli said the idea of a merger of Aker Yards ASA with Italy’s state-owned shipbuilder Fincantieri SpA is gaining industry and political support. Aker Yards management has hired financial advisers, including JP Morgan, to examine ?strategic alternatives? for the Norwegian shipbuilder after Korea’s STX bought a 39.2% stake last year.

De Piccoli said “With the treasury ministry, we are at work examining the possibility of coming together, also on the institutional level with the other countries worried about this new fact.” Italian politicians are concerned that if the Korean shipbuilders gain access to European shipbuilding technology, the entire sector in Europe will be wiped out in a few years.

The government is planning an initial public offering of shares in Fincantieri, while even via an Aker merger, the Italian state could keep a majority in the combined group.