Baleària says it will invest €45 million to modernize its Armas fleet

After receiving the green light from Competition, the shipping company prepares to operate routes in the Canary Islands and the Strait.

Baleària is revving its engines to launch the business it will take over with the acquisition of assets from Armas Trasmediterránea.

The president of Baleària, Adolfo Utor, recently indicated that the Armas fleet requires investments to bring it up to the standards demanded by its new owner.

For this reason, the company plans to allocate €45 million to the technical and performance improvement of the vessels. In addition, it will boost training and stability of shore‑based and onboard teams to ensure operational reliability and punctuality on all schedules, reports Expansión Digital.

Baleària will take over the management of 15 vessels and the operation of maritime lines, as well as 1,500 employees. In the Strait area, Baleària retains only a portion of Armas’ assets, as the majority has been acquired by the Danish shipping group DFDS.

The process is at different administrative stages depending on the geographic market:

• Strait area: the operation has been fully authorized by the CNMC.
• Canary Islands: the CNMC will forward the file to the Ministry of Economy, Trade and Enterprise, which may refer it to the Council of Ministers for final ratification.
• Alborán: the operation remains under CNMC review, with the shipping company actively collaborating in the process.

Utor already noted that, once the operation is approved, Canarian partners will join. He did not disclose their identity, only that they are experienced Canarian entrepreneurs, “solvent”, and that they will be minority shareholders. They are considering a stake of 30 %–40 % of the capital.

Volume

The sale of Naviera Armas totals €260 million in total, including both the portion acquired by Baleària and the part taken by DFDS, according to industry sources. This amount would double with the execution of a purchase option for the fleet.

Utor revealed in the results presentation that for the purchase of Naviera Armas he has secured a €215 million loan and will need an additional €50 – €60 million for capex.

“We will be close to €1 billion of debt this year,” he said.