A new era is beginning in Baltic ferry traffic and the stakes are changing.
Bidding for one of the major players, Silja Line, has ended and it will be taken over by the Estonian ferry operator Tallink. Tallink has contracted to pay 450 million euros and a block of 5 million of its owns shares. The news of the purchase was confirmed Monday morning by Tallink's head of sales and marketing, Peter Roose.
The company insists that both operators will continue to run following their existing schedules.
Silja's present owner, the Bermudan-British, but U.S.-listed company Sea Containers put Silja on the market last November. The group decided to sell off Silja Line and its other ferry operations to plug mounting losses.
Around 20 companies were interested in acquiring the ferry line. Among them and in addition to Tallink, the Åland-based Viking Line and the Norwegian Norferries were in the bidding. Norferries said last week it had offered 520 million for Silja Lines.
Tallink has been building up its own fleet and last year went public to acquire capital for even more expansion. If the deal does in fact go through, Tallink will significantly strengthen its position in the competitive northern Baltic passenger ferry market.
One advantage that Tallink has is a lower wage scale, although that has already led to a recent clash with Finland's Seamen's Union.
YLE24, YLE Radio News
