Italian cruise ship company to buy 50% stake in Palumbo shipyard

Italian cruise ship company MSC is eyeing the purchase of a 50% stake in Malta’s Palumbo Shipyard.

The information was divulged by the Malta Competition and Consumer Affairs Authority that issued a notification of market concentration for public feedback.

“The nature of the concentration is an acquisition of joint control by MSC Cruises S.A. of Palumbo Malta Shipyard Limited and Palumbo Shipyard Limited,” the authority said.

Palumbo took over the remnants of the State-owned Malta Drydocks when this was disbanded 10 years ago. It acquired a 30-year concession to run the Bormla shipyard and eventually the yacht repair facility.

The shipyard includes Dock 6, also known as the Red China Dock, which is one of the largest dry docks in the Mediterranean.

It has placed among the top three worldwide in the cruise ship refitting.

MSC operates cruise ships that also use Valletta as a stopover port.

The proposed deal with MSC would have positive economic benefits for Malta, sources said.

Palumbo Group has also positioned itself among the top global players in the superyacht sphere, and this partnership with MSC ties in with the company’s vision to transform the Cottonera shipyard into one of the best in the world.

When contacted, a spokesperson for Palumbo Group said: “We feel it is not prudent to comment for the time being until everything has been finalised.”