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CMA worried about Menzies’ acquisition of ASIG

Staff Writer | December 15, 2016
Menzies’ acquisition of ASIG may give rise to competition concerns over ground handling services at Aberdeen Airport, says UK.
Aberdeen Airport
Acquisition   The Competition and Markets Authority
The Competition and Markets Authority (CMA) has found that the merger may lead to a substantial lessening of competition (SLC) in the supply of ground handling services at Aberdeen Airport Airport (including baggage, ramp, passenger, airside cargo handling and de-icing).

Menzies and ASIG are close competitors at Aberdeen Airport and, following the merger, only Swissport will remain as a credible bidder for airlines located there.

In contrast, at the other airports where both Menzies and ASIG are active (Manchester and London Heathrow), the CMA found that there would be a number of credible competitors that could bid for future contracts.

Menzies Aviation plc and Menzies Aviation Inc. (Menzies) agreed to acquire ASIG Holdings Limited and ASIG Holdings Group (ASIG) from BBA Aviation plc.

Both Menzies and ASIG provide a range of services to airlines at UK and international airports.

Menzies can avoid the merger being referred for an in-depth investigation if it can offer a remedy to address the CMA’s competition concerns at Aberdeen Airport. Menzies has until December 22, 2016 to do so.