Competition & Markets Authority
CMA clears airport services merger
Menzies’ purchase of Airline Services cleared by CMA after in-depth CMA investigation.
The Competition and Markets Authority (CMA) yesterday cleared Menzies Aviation’s takeover of part of Airline Services’ business after an in-depth investigation allayed competition concerns.
Both firms supply airlines in the UK with support services including the de-icing of aircraft and ground handling.
An initial Phase 1 probe raised concerns that the merger could result in less choice and higher prices or a reduction in quality for these services for airlines at a number of key airports in England and Scotland. These concerns led to the merger being referred to a Group of independent CMA Panel members for an in-depth Phase 2 investigation.
The CMA yesterday issued its final decision. Having thoroughly scrutinised the wider evidence base considered in the Phase 2 inquiry, it has found that the market for ground handling services has a strong recent history of companies entering and competing for contracts. The CMA also found that Menzies and Airline Services are not close competitors in the market for de-icing services, meaning the takeover would not lead to a substantial lessening of competition.
The CMA has therefore decided to clear the merger.
Further information can be found on our case page.
Latest News from
Competition & Markets Authority
Drug firms accused of illegal market sharing over anti-nausea tablets24/05/2019 09:10:00
The CMA has provisionally found that 4 pharmaceutical companies broke the law by agreeing not to compete in the supply of an anti-nausea drug in the UK.
Apple pledges clearer information on iPhone performance23/05/2019 09:20:00
Apple has committed to be clearer and more upfront with iPhone users about battery health and performance, following action by the CMA.
3 directors of office fit-out firms disqualified13/05/2019 09:20:00
The CMA has secured the disqualification of 3 former directors of office fit-out companies for their involvement in illegal cartel behaviour.
Is competition enough? Competition for consumers, on behalf of consumers.09/05/2019 15:20:00
Andrew Tyrie yesterday spoke to the Social Market Foundation about protecting and promoting the consumer interest in the modern economy.
CMA provisionally clears PayPal / iZettle takeover01/05/2019 09:20:00
The CMA has provisionally cleared PayPal’s completed takeover of mobile payments company iZettle after an in-depth, Phase 2, probe.
Construction cartel directors disqualified29/04/2019 10:05:00
The CMA has secured the disqualification of 2 former directors of CPM Group Ltd following CPM’s admission that it breached competition law.
CMA blocks merger between Sainsbury’s and Asda26/04/2019 09:20:00
The CMA has blocked the Sainsbury’s-Asda merger after finding it would lead to increased prices in stores, online and at many petrol stations across the UK.
CMA recommends shake-up of UK audit market19/04/2019 09:20:00
The Competition and Markets Authority (CMA) has published its final report with recommendations to address serious competition problems in the UK audit industry.