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CMA clears Menzies Aviation-Airline Services airport services merger

Staff Writer | January 17, 2019
The Competition and Markets Authority (CMA) has cleared Menzies Aviation’s takeover of part of Airline Services’ business after an in-depth investigation allayed competition concerns.
Menzies Aviation
Britain   The CMA also that Menzies and Airline Services are not close competitors
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 has 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.