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By Foo Yun Chee
BRUSSELS, Feb 17 (Reuters) – EU antitrust regulators warned on Friday a bid by South Korea’s biggest carrier Korean Air Lines 003490.KS for second-placed Asiana Airlines 020560.KS could hurt competition, as they opened a full-scale investigation of the deal.
The proposed acquisition, announced in late 2020, would see Korean Air become the top shareholder of indebted Asiana, marking one of the first major deals in the aviation industry since the COVID-19 pandemic.
The European Commission said the deal could impact passenger and air cargo transport services between Europe and South Korea as the two airlines are strong and close competitors, confirming a Reuters story last week.
“The transaction could reduce competition in the provision of passenger transport services on four routes between South Korea and the EEA (European Economic Area),” the EU competition enforcer said in a statement.
Sources have told Reuters the four routes are to Barcelona, Frankfurt, Paris and Rome.
The EU watchdog will decide by July 5 whether to clear or block the deal. The deadline can be extended depending on whether the companies offer remedies to address the EU concerns.
(Reporting by Foo Yun Chee Editing by Mark Potter)
((foo.yunchee@thomsonreuters.com; +32 2 287 6844; Reuters Messaging: foo.yunchee.thomsonreuters.com@reuters.net))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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