Geodis is set to drive ahead with its European trucking expansion following European Commissionapproval for its acquisition of rival French haulage operator Giraud.
The EU executive ruled that the takeover would not significantly impede effective competition inthe European Economic Area (EEA) due to strong market competition in the two companies’ areas ofbusiness. There are no significant overlaps between the parties’ activities, it noted.
Under the transaction, Geodis will take full control of Giraud’s four business areas, includingits activities in central and eastern Europe, northern Europe and France, and southern Europe.
“The proposed transaction will result in a vertical relationship between, on the one hand,SNCF’s rail freight transport services and, on the other, Giraud’s land-based freight forwardingactivities (including freight forwarding by rail and road). The Commission has examined the effectsof the proposed transaction and confirmed that there would be no incentive for SNCF to restrictaccess to its rail transport services following the merger because Giraud specialises incommissioning road transport, and because there are strong competitors in the freight forwardingsector who are important clients of SNCF,” the Commission stated.
Geodis announced in March that it would buy Giraud’s Northern and Southern Europe road freightdivisions following the acquisition of its Steel division and Central and Eastern Europe divisionin July 2009. The deal would enable its trucking operator Geodis BM to build a European network andgrow to annual revenues of more than €1 billion.
