IN THE NEWS
Competition Commission issues adverse provisional findings in relation to Ryanair's minority stake in Aer Lingus
The Competition Commission has provisionally decided that Ryanair's 29.8 per cent stake in Aer Lingus could reduce competition on routes between Great Britain and the Republic of Ireland. The Commission has concluded that the shareholding gives Ryanair the ability to influence the commercial policy and strategy of Aer Lingus, its main competitor on these routes. The Commission is now seeking views on how much of its shareholding Ryanair should have to sell and whether such a disposal should be accompanied by other safeguards, should the provisional findings be confirmed. Click here.
Commission accepts commitments from Star alliance members on transatlantic air transport passenger market
The European Commission has accepted commitments offered by Air Canada, United and Lufthansa to address the Commission's concerns that the parties' cooperation under a revenue-sharing joint venture may be in breach of Article 101 and have adverse effects in relation to premium passengers on the Frankfurt-New York route. In order to address these concerns, the parties offered to make slots available at Frankfurt and New York airports and to enter into agreements with competitors, allowing them to offer more attractive services. After having consulted interested parties through a market test, the Commission has now made these commitments legally binding on the three airlines for a period of ten years. Click here.
Commission approves merger of Munksjö and Ahlstrom's label and processing paper business, subject to conditions
Following a Phase II investigation, the European Commission has approved under the EU Merger Regulation the proposed merger of Munksjö AB of Sweden and the label and processing paper business of Ahlstrom Corporation of Finland. The approval is conditional on the divestment of Ahlstrom's abrasive paper backings and pre-impregnated paper ("PRIP") business located at Osnabrück, Germany. The Commission had concerns that the transaction, as initially notified, would have allowed the merged entity, Munksjö Oyj, to raise prices in heavy weight abrasive paper backings, which are used in abrasive products, and PRIP, a type of décor paper used by furniture manufacturers. Click here.
Commission clears Syniverse's acquisition of MACH, subject to conditions Following a Phase II investigation, the European Commission has approved under the EU Merger Regulation the proposed acquisition of Mach of Luxembourg by Syniverse of the US. The approval is conditional on the divestiture of Mach's Data Clearing ("DC") services and Near Trade Roaming Data Exchange ("NRTRDE") services in the EEA. These two types of services are technical steps in the roaming process enabling people to use their mobile phones while travelling abroad. Syniverse and Mach are the two largest providers of these services in the EEA. After a preliminary investigation, the Commission had concerns that the transaction, as initially notified, would have allowed Syniverse to raise prices or to decrease the quality of these services. Click here.
EU
Mergers
- The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Lutosa of Belgium by McCain of Canada. Lutosa's activities overlap with those of McCain in the production and sale of processed potato products, in particular frozen French fries. The clearance is conditional on the divestment of Lutosa's branded retail business in the EEA. Click here.
UK
Competition Commission
- The Competition Commission has published an issues statement as part of its investigation into the completed acquisition by Cineworld plc of City Screen Limited. Click here.
Office of Fair Trading
- The OFT has announced that it has closed an investigation into suspected anti-competitive arrangements relating to certain leisure goods on administrative priority grounds. The investigation, opened in July 2012, was being conducted under the Chapter I prohibition of the Competition Act 1998 and Article 101. Click here.
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