The proposed Korean Air and Asiana Airlines merger is facing prolongations for international approval. The European Union has extended its decision date on the acquisition from July 5 to August 3.
In February, the European Commission initiated a thorough investigation to determine if the proposed transaction could lead to unfavorable competition in the passenger and cargo transport services between South Korea and European Economic Area. In their preliminary review, EC indicated that four direct routes from Incheon to Paris, Frankfurt, Rome, and Barcelona might experience reduced competition due to this agreement.
Related: South Korean Watchdog OKs Korean Air-Asiana Tie-Up With Conditions
The merger of Korea’s two largest airlines was originally announced in November 2020 by the Korean government and Korea Development Bank. The deal would be worth more than $600 million. Korean Air will take an approximately 65 percent stake in Asiana and consolidate the airline.
Korean Air is a member of the SkyTeam alliance. Following the successful completion of the merger, Asiana will become part of SkyTeam and be integrated into Korean Air, making it the world’s seventh-largest airline according to The Korea Times. Asiana is currently a member of the Star Alliance.
The transaction sought approval from fourteen regulatory bodies. Korean Air submitted required business combination reports to nine countries in January 2021. Since then, it has received approval from mandatory bodies like Australia, Korea, Malaysia, Singapore, Turkey, Taiwan, and Vietnam.
Featured News
CVS Health Explores Potential Breakup Amid Investor Pressure: Report
Oct 3, 2024 by
CPI
DirecTV Acquires Dish TV, Creating 20 Million-Subscriber Powerhouse
Oct 3, 2024 by
CPI
South Korea Fines Kakao Mobility $54.8 Million for Anti-Competitive Practices
Oct 3, 2024 by
CPI
Google Offers Settlement in India’s Antitrust Case Regarding Smart TVs
Oct 3, 2024 by
CPI
Attorney Challenges NCAA’s $2.78 Billion Settlement in Landmark Antitrust Cases
Oct 3, 2024 by
nhoch@pymnts.com
Antitrust Mix by CPI
Antitrust Chronicle® – Refusal to Deal
Sep 27, 2024 by
CPI
Antitrust’s Refusal-to-Deal Doctrine: The Emperor Has No Clothes
Sep 27, 2024 by
Erik Hovenkamp
Why All Antitrust Claims are Refusal to Deal Claims and What that Means for Policy
Sep 27, 2024 by
Ramsi Woodcock
The Aspen Misadventure
Sep 27, 2024 by
Roger Blair & Holly P. Stidham
Refusal to Deal in Antitrust Law: Evolving Jurisprudence and Business Justifications in the Align Technology Case
Sep 27, 2024 by
Timothy Hsieh