Greece's Competition Commission Okays OLP-COSCO Deal
By Aiswarya Lakshmi
Thursday, June 23, 2016
The Competition Commission approved the sale of a majority stake in Piraeus Port (OLP) to China’s COSCO during its meeting on Wednesday, saying it is in line with Greek competition laws.
According to Greek national news agency AMNA, the next and final step for the changing of hands at Piraeus port is for the concession agreement to be submitted to parliament for approval.
“Having taken into account the conditions and prospects of the relevant market, the improvements in its efficiency and the commitments given, concluded that the concentration does not raise serious doubts as to the compatibility of the deal with the performance requirements of competition in the individual markets it concerns,” the Commission said in its decision.
After the parliament gives the green light, under the agreement sealed in April COSCO will pay to the Hellenic Republic Asset Development Fund (HRADF) 280.5 million euros (317.3 million U.S dollars) for the 51 percent of shares in PPA and the management of the port.
Following investments of another 300 million euros total worth in infrastructure works within the next five years, under the deal, COSCO will pay Greece's privatization fund an extra 88 million euros for an additional 16 percent of shares in PPA.