Qantas 'disappointed' at regulator delaying Alliance Aviation deal verdict (updated)

Alliance Aviation Services

28/10/2022 01:49

(Adds details and background on deal and timeline)
       Oct 28 (Reuters) - Australia's Qantas Airways Ltd
 QAN.AX  on Friday "expressed disappointment" at the country's
competition regulator delaying its decision on the carrier's
$394 million buy of Alliance Aviation Services  AQZ.AX . 
    The Australian Competition & Consumer Commission (ACCC) has
delayed the provisional date to announce its final verdict on
the deal three times so far, with the decision now expected on
March 20, 2023. It began an informal merger review on May 18. 
    In May, Qantas said it was buying the remaining 80% stake in
charter flights operator Alliance Aviation Services for A$610.8
million ($394.03 million).  urn:newsml:reuters.com:*:nL3N2WW3KV 
    The regulator, on its website, said the date was pushed back
to give the parties more time to submit information. It was not
immedietely clear what information had been sought. 
    The ACCC did not immedietely respond to a Reuters request
for clarification. 
    The ACCC has previously said its preliminary view was that
the deal was likely to hamper competition for air transport
services to and from some remote parts of Australia for
corporate customers.  urn:newsml:reuters.com:*:nL1N2ZT2I1 
    Alliance Aviation's charter alliance agreement with Virgin
Australia also hangs in the balance, with the ACCC proposing to
deny approval for the firms to extend their agreement. If Qantas
succeeds in buying Alliance Aviation, the charter alliance deal
extension is even less likely to go through. 
    Alliance Aviation's shares last traded at A$3.23, a 32%
discount to Qantas' offer price of A$4.75. 
($1 = 1.5501 Australian dollars)
 (Reporting by Harshita Swaminathan; Editing by Rashmi Aich)
 ((Harshita.Swaminathan@thomsonreuters.com;))