The Competitors & Markets Authority (CMA) has a launched an investigation into the proposed takeover of Air Europa by Worldwide Airways Group.
The group – which presently owns British Airways, Aer Lingus and Iberia – agreed to take over the smaller Spanish provider for €500 million earlier this 12 months.
The regulator has now confirmed it should study if the deal harms competitors within the UK.
IAG had initially introduced plans to purchase Air Europa for €1 billion in 2019.
Nevertheless, the worth was lower in half after the aviation sector was hit by the Covid-19 pandemic.
IAG has provided concessions to handle EU antitrust issues over the deal, a submitting confirmed final month, although particulars weren’t supplied.
The European Fee opened an in-depth investigation in June, voicing issues that the proposed transaction would scale back competitors on Spanish home routes and on worldwide routes to and from Spain.
The deal, which entails Iberia shopping for Air Europa on behalf of IAG, had sparked opposition from the Unite union over jobs and from rival carriers.
The CMA mentioned it has set a January 19th deadline for its preliminary investigation resolution.
The physique additionally confirmed it could launch an identical probe into the acquisition of Asiana by rival Air Korea.
