7th Aug 2018 10:34
LONDON (Alliance News) - The UK Competition & Markets Authority said Tuesday it will conduct an in-depth probe into the acquisition of aircraft de-icing company Airline Services Ltd by the aviation unit of John Menzies PLC, unless Menzies Aviation addresses competition concerns.
Menzies Aviation bought Airline Services from Airline Services & Components Group Ltd in April for an undisclosed sum. Airline Services currently operates across 60 airlines at 12 UK airports, which will take Menzies into new sites including Liverpool, Newcastle, Birmingham and Exeter.
The watchdog said it has identified competition concerns regarding de-icing services at Edinburgh, Glasgow and London Heathrow airports, and ground handling services at London Gatwick and Manchester airports.
"The merger of Menzies and Airline Services, which are close competitors at these airports, could lead to less choice for the airlines operating there, potentially leading to higher prices and lower quality service," CMA added.
Menzies Aviation has until August 14 to offer ways to address the competition concerns, otherwise the merger will be referred for an in-depth phase 2 probe.
Shares in John Menzies were broadly flat at 640.52 pence each on Tuesday morning.
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