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UK antitrust agency expected to approve Korean Air-Asiana deal

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Korean Air B787-9 / Courtesy of Korean Air
Korean Air B787-9 / Courtesy of Korean Air

By Kim Hyun-bin

The U.K antitrust authority is expected to accept Korean Air's proposed corrections concerning the acquisition of its domestic rival Asiana Airlines, moving the high-profile takeover one step closer to reality, according to industry officials Tuesday.

The U.K. Competition and Markets Authority (CMA) said Monday (local time) that it is considering the undertakings regarding competition concerns over the buyout of Asiana Airlines by Korean Air.

"Undertakings offered by Korean Air on Nov. 21 might be accepted to remedy the substantial lessening of competition," the CMA said.

It had previously decided to postpone the decision, saying that Korean Air and Asiana Airlines are the only two airlines operating between Korea and London. At the same time, Korean Air was notified to submit corrective measures by Nov. 21.

"The CMA announced on Nov. 28 (local time) that it accepted in principle the voluntary correction proposal submitted by the company. Accordingly, the competition authorities will go through the process of deciding whether to approve or not after taking into consideration the market's opinion on the voluntary correction," a Korean Air official said.

"We are optimistic about their decision, and plan to faithfully cooperate for the remaining period to ensure that the British competition authority's business combination review is completed as soon as possible."

The CMA will make a final decision on the deal after collecting market opinions.

"Approval of the acquisition is more possible now as the British competition authority said it will accept Korean Air's corrective measures and could have a positive impact on the remaining countries' decisions," an industry official familiar with the matter said.

The U.K.'s judgment is expected to positively impact the screening results of other countries, including the U.S. On Nov. 15, the U.S. Department of Justice announced its position that it would "take more time to review" Korean Air's acquisition of Asiana Airlines.

At that time, the U.S. competition authorities also judged that the deal still has a high possibility of monopoly concerns.

Korean Air can only complete its takeover of Asiana Airlines after obtaining approval from 14 major countries and blocs. Currently, the deal has been approved by nine.

The five undecided entities include the U.K. (a voluntary reporting country), the U.S., the European Union, Japan and China, which are required to review the proposed acquisition. If the competition authority of any one country disapproves of the deal, it may be halted.


Kim Hyun-bin hyunbin@koreatimes.co.kr


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