Ryanair halted in rival takeover
bid
RYANAIR announced last week that its takeover bid for Aer Lingus has
lapsed.
The announcement followed a decision by the European Commission to launch
an in- depth investigation of the bid.
In a statement the company said its offer had lapsed with immediate effect
and all acceptances were void.
But it said that that in the event of Commission clearance following its
Phase II review it intended to make a further offer.
The Commission had said the proposed ¤1.4billion takeover would
raise serious competition concerns.
It said the takeover could reduce choice for consumers and increase fares.
The Commission opened a Phase II inquiry, which would give it 90 days
to decide if the takeover would significantly impede competition within
the European Economic Area.
The Commission said the proposed merger could lead to the elimination
of competition between the carriers on a large number of routes out of
Ireland as well as eliminate competition at Dublin airport.
The EC has been considering Ryanair’s bid since October 30 and was
due to give its decision at the end of last month.
The deadline was extended because Ryanair proposed a number of remedies
to resolve potential competition issues —including giving up some
or all of Aer Lingus’ Heathrow slots to allow other airlines to
compete on the Dublin/London route. | 