Korean Air wins EU antitrust approval for Asiana deal (updated)

Trinity Airways Co

13/02/2024 11:27

(Adds Korean Air's statement in para 4, 5)
    By Foo Yun Chee
       BRUSSELS, Feb 13 (Reuters) - Korean Air  003490.KS  won
EU antitrust approval on Tuesday to buy Asiana Airlines
 020560.KS  after the companies agreed to sell the latter's
cargo unit and divest routes to four European cities to a rival.
    Korean Air, South Korea's biggest carrier, announced in late
2020 its 1.8-trillion-won ($1.35 billion) bid to become the top
shareholder of indebted Asiana.
    The airline sector has seen a wave of consolidation in
recent months, with Lufthansa  LHAG.DE  seeking a 41% stake in
Italy's ITA Airways and British Airways and Iberia owner IAG's
 ICAG.L  bid for the remaining 80% of Spanish carrier Air Europa
it does not already own.
    "With the EC approval secured, Korean Air continues to be
focused on its discussions with the U.S. competition authority
to finalise the overall merger review processes as soon as
possible," Korean Air said in a statement. 
    Korean Air said it has so far obtained or completed a review
process with 13 of the 14 regulatory authorities requiring
business combination approvals. 
    The European Commission said remedies offered by the two
Korean carriers addressed competition concerns, confirming a
Reuters story. The concessions could set the benchmark for other
airline mergers.
    The EU competition enforcer said Korean Air will divest
Asiana's global cargo freighter business and also offer slots,
traffic rights and aircraft to Korean budget rival T'Way
 091810.KS  for routes to Barcelona, Paris, Rome and Frankfurt.
    The deal can only be implemented once the Commission has
approved the buyer for the cargo business and also conditional
on T'Way starting operations on the four routes. 
    "These remedies effectively address our concerns, and will
ensure fair competition and consumer choice in this vital
sector," EU antitrust chief Margrethe Vestager said in a
statement.
    
    ($1 = 1,330.5100 won)

 (Reporting by Foo Yun Chee in Brussels; Additional reporting by
Heekyong Yang in Seoul; Editing by Susan Fenton)
 ((foo.yunchee@thomsonreuters.com; +32 2 585 2866; Reuters
Messaging: foo.yunchee.thomsonreuters.com@reuters.net))