P&O, the transport, property and construction group intends to ask the Office of Fair Trading for permission to start merger talks with Swedish rival cross-channel ferry operator Stena.
Its application was blocked three years ago on the grounds that ferry companies were not permitted to combine their cross-channel operations.
But P&O will now argue that strong competition from Eurotunnel – which caused the P&O ferry business’ first drop in traffic in the first quarter of this year – should allow a change to the ruling.
Some papers report that although cross-channel traffic has been hit by Eurotunnel, the company denies a merger is on the cards.
References: Financial Times 01/05/96 page 25, The Independent 01/05/96 page 20, The Times 01/05/96 page 26, The Daily Telegraph 01/05/96 page 22
