CMA clears Menzies Aviation-Airline Services airport services mergerStaff 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.
Britain The CMA also that Menzies and Airline Services are not close competitors
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. ■