17th Apr 2015 06:26
LONDON (Alliance News) - The UK Competition and Markets Authority on Friday said there has been no material change in circumstances or any special reason for it reverse its ruling to force Ryanair Holdings PLC to sell down its stake in Irish flag carrier Aer Lingus Group PLC.
Ryanair requested in February that the CMA, the UK's competition authority, re-examine its decision to require Ryanair to sell down its 29.8% stake in Aer Lingus to 5%.
It argued in particular that the bid made for Aer Lingus by International Consolidated Airlines Group, the owner of British Airways, and the period of time since the decision was made by the Competition Commission in August 2013, constituted a material change in circumstances and that the CMA no longer had the power to impose a divestment remedy on Ryanair.
The CMA said that after considering responses from Aer Lingus, IAG and the Irish government, which also holds a substantial stake in Aer Lingus, along with further submissions made by Ryanair, it has provisionally decided no material change in circumstances had taken place to force it to reverse its decision.
"We have carefully considered submissions from Ryanair and others and taken into account all the relevant circumstances, including the fact that the IAG bid is conditional on receiving an irrevocable commitment from Ryanair. Having done so, our provisional view is that neither recent events nor the time that has passed since our final report are reasons not to implement the divestment remedy," said Simon Polito, chairman of the CMA's Ryanair/Aer LIngus Inquiry Group.
By Sam Unsted; [email protected]; @SamUAtAlliance
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