EU Regulators Delay Review of Korean Air-Asiana Airlines Merger Deal

Strategic Insights -

European Union (EU) antitrust regulators have yet to resume their review of the proposed merger between Korean Air and Asiana Airlines, nearly two weeks after the parties submitted remedial measures to address competition concerns. In June, the European Commission (EC) suspended its investigation into the 1.8 trillion-won ($1.37 billion) merger deal due to the companies' failure to meet their deadline for providing corrective measures. The EC has raised concerns that the merger may restrict competition in the markets for passenger and cargo air transport services between the EU and Korea.

Key Takeaways:

  • The European Commission has yet to resume its review of the proposed merger between Korean Air and Asiana Airlines, nearly two weeks after the parties submitted remedial measures to address competition concerns.
  • The companies submitted corrective measures on November 2, including selling Asiana's cargo business and divesting passenger flight routes to four European cities.
  • The delay in the review process is due to "missing information" in the remedies submitted by the parties.
  • The EC has raised concerns that the 1.8 trillion-won ($1.37 billion) merger deal between Korean Air and Asiana may restrict competition in the markets for passenger and cargo air transport services between the EU and Korea.
  • Korean Air has received approval in 11 countries, including Britain, Australia, and Singapore, but has yet to receive approval from the EU, the United States, and Japan.
  • The merger deal has been pursued for the past three years and a rejection by the EC would dampen the prospects of the deal.

Statistics:

  • The proposed merger between Korean Air and Asiana Airlines is valued at 1.8 trillion won ($1.37 billion).
  • The EC has received the remedies submitted by the parties on November 3 (local time).
  • The delay in the review process for nearly two weeks has put the deal's prospects on hold.
  • 11 countries have approved the merger deal, including Britain, Australia, and Singapore.
  • The EC has yet to receive approval from three key markets: the EU, the United States, and Japan.

Sources:

  • Yonhap News Agency