Brittany Ferries offer welcomed by business

The proposal to buy a larger stake in Condor is still subject to regulatory approval

Business leaders in Guernsey have welcomed a move by Brittany Ferries to become the majority shareholder in Condor.

The French firm announced on Thursday it was looking to buy 22% of the company, bringing the company's ownership to 51%, with an option to secure 100%.

Richard Hemans, from Guernsey's Institute of Directors, said he hoped the influence of Brittany Ferries would lead to a better customer experience.

Mr Hemans said of the proposal: "The timing is interesting, with this race for the Channel Island ferry contract ongoing, perhaps it's something they believe will help them secure the contract.

"It seems to me they must be confident they will get the tender, which is why they are doing this deal.

"I think this puts them in pole position for the tender."

Condor Ferries have submitted a bid to run operations in the Channel Islands and are up against Danish form DFDS to secure the contract.

It is expected the new operator for the next 15 years would be announced before the end of the year by the Government of Jersey and States of Guernsey.

The proposed deal is still subject to regulatory approval by Jersey's Competition and Regulatory Authority.

People who want to comment on the proposal have until 20 August, the authority said.

Brittany Ferries has no turnover in Guernsey so it does not need approval by the Guernsey Competition and Regulatory Authority.

Analysis

Condor was in trouble last year as it went through what it described as a "temporary but challenging time", with its minority shareholder Brittany Ferries having to loan it £10m.

Now Brittany Ferries is proposing to bring its ownership in Condor to 51%.

The proposed takeover comes at an important time for Condor, with the future of its Channel Island operations at risk.

But the French firm must be confident in Condor's ability to secure the contract - otherwise it would not have moved to become majority shareholder.

The question is, how likely were Condor to be successful without the proposal from Brittany Ferries, or was it a case of do or bust for the Channel Island firm?