Transport

EU green light for Msc to enter Italo's capital

The Heropean Commission has approved the acquisition of joint control of Italo (Nuovo Trasporto Viaggiatori) by Msc Mediterranean Shipping Company (Switzerland) and the American fund Global Investments (Gip III)

by Marco Morino

Milan, Italy - March 22, 2022: Italo ETR 675 Pendolino high-speed trains of Nuovo Trasporto Viaggiatori NTV in Milano Centrale railway station in Milan, Italy.

3' min read

Key points

  • Joint control
  • A large multimodal group
  • The Ntv model

3' min read

The EU Commission has given clearance to the acquisition of joint control of Italo (Nuovo Trasporto Viaggiatori) by Msc Mediterranean Shipping Company (Switzerland) and the US fund Global Investments (Gip III). The transaction concerns mainly the market for high-speed rail passenger transport in Italy, as well as travel agencies and maritime passenger transport by ferry or cruise. The Commission concluded that the proposed concentration would not raise competition concerns given its limited impact on competition in the markets where the companies are active. The notified transaction was examined under normal procedure.

Joint Control

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One step back. On 2 October 2023, Msc, the global transport and logistics company headed by Geneva, Switzerland-based shipowner Gianluigi Aponte, signed a binding agreement to acquire a approximately 50% stake in Italo from Global Infrastructure Partners (Gip), a leading independent investor active in the infrastructure sector, and to establish a long-term strategic partnership for Italo's future development.

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The other stake of about 50% in Italo will continue to be owned by Gip, which will have a joint governance with Msc, some entities of the Allianz Group and funds managed by Allianz Capital Partners as well as other co-investors, including Luca Cordero di Montezemolo (who retains the position of chairman), Isabella Seragnoli and Alberto Bombassei.

Italo is one of Europe's leading private high-speed train operators. Since its debut in 2012, Italo has grown to operate a fleet of 51 energy-efficient electric trains, connecting 51 cities across Italy and serving over 20 million passengers per year.

A large multimodal group

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The first objective of Italo with partner Msc will be the expansion of the fleet, which should rise from the current 51 trains, all manufactured by Alstom, to 60 convoys within the next four years (second half of 2027). The company's CEO, Gianbattista La Rocca, who was confirmed in his role, had anticipated this to Il Sole 24 Ore (21 June edition). Now, with the new shareholder, those words are more relevant than ever. Italo (1,450 employees; average age 33) connects 59 stations in 51 Italian cities with 118 trips per day.

Then there is the Itabus company, acquired by Italo in May 2023. The number of buses making up the Itabus fleet, currently 100, is also set to grow (on this point, however, La Rocca did not give precise figures). High-speed trains and buses for long-distance travel: with the entry into Italo of Msc, the world's leading cargo line operator and one of the largest cruise ship companies, the first multimodal group in Europe is born.

The shareholder Msc will facilitate the integration of shipping routes, trains and buses. But it is an agreement that could also open up hitherto unexplored possibilities in the logistics and goods transport sector: Msc, as well as managing maritime cargo lines worldwide, is also present in the air cargo sector, where it has recently acquired a majority shareholding in AlisCargo Airlines, a company based in Milan, and in rail freight transport, with the company Medway, a competitor among others of Mercitalia (the cargo company of the FS group). For Italo, therefore, there would be the suggestion of adding high-speed passenger transport to high-capacity freight transport. But this is a matter still in the making.

Diego Aponte, President of Msc, opens up to all these possibilities: "This agreement demonstrates our long-standing commitment to Italy and support for high-speed passenger rail transport in the country. We strongly believe in Italo's potential to further strengthen rail connectivity throughout Italy, but also in the domestic tourism market. Furthermore, today's agreement also reflects our group's objective to further develop sustainable modes of transport, both for passengers and freight".

The Ntv model

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Ntv, today's Italo, was the first entirely private operator to break the monopoly of FS on the high-speed network. It was a unique model in Europe, studied all over the world and taken as an example by the countries that subsequently liberalised the market. Thanks to the introduction of competition, with the arrival of Ntv in Italy, demand for high-speed rail increased by 100% and prices decreased by 50%.

In 2020, the transport sector was strongly affected by the arrival of the Covid. Italo, due to travel restrictions between the different regions, went through a very complicated period, forced to practically zero its connections. Despite the difficulties and the reduction in traffic on the most popular routes before the pandemic, Italo decided to bet on the future, increasing and diversifying its network, thus beginning to expand in the South, serving an area of the country with great demand for quality rail transport. Connections to Calabria and Cilento were inaugurated, while in the summer of 2021 Italo convoys landed in Puglia, Caserta and Benevento. New destinations also in the North: arrival in Trieste, then Trieste Airport and finally Genoa.

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