CMA to look at IAG buy of Air Europa | Information

CMA to examine IAG purchase of Air Europa


The Competitors & Markets Authority (CMA) has a launched an investigation into the proposed takeover of Air Europa by Worldwide Airways Group.

The group – which at present owns British Airways, Aer Lingus and Iberia – agreed to take over the smaller Spanish service for €500 million earlier this 12 months.

The regulator has now confirmed it is going to look at if the deal harms competitors within the UK.

IAG had initially introduced plans to purchase Air Europa for €1 billion in 2019.

Nonetheless, the value was reduce in half after the aviation sector was hit by the Covid-19 pandemic.

IAG has supplied concessions to deal with EU antitrust considerations over the deal, a submitting confirmed final month, although particulars weren’t supplied.

The European Fee opened an in-depth investigation in June, voicing considerations that the proposed transaction would cut back competitors on Spanish home routes and on worldwide routes to and from Spain.

The deal, which includes Iberia shopping for Air Europa on behalf of IAG, had sparked opposition from the Unite union over jobs and from rival carriers.

The CMA stated it has set a January nineteenth deadline for its preliminary investigation determination.

The physique additionally confirmed it could launch the same probe into the acquisition of Asiana by rival Air Korea.

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