EU To Open In-Depth Probe Of Lufthansa,Austrian Deal -Lufhansa
July 01 2009 - 2:48PM
Dow Jones News
Deutsche Lufthansa AG (LHA.XE) said Wednesday the European
Commission will start an in-depth anti-trust probe into Lufthansa's
planned takeover of Austrian flag carrier Austrian Airlines AG
(AUA.VI).
The Commission decided on an in-depth probe, or Phase II, after
completing Phase I of the antitrust investigation, Lufthansa
said.
The airline said the Commission's launch of an in-depth probe
comes as a surprise, against the background of both airlines'
long-term joint venture.
"Nevertheless Lufthansa remains confident to receive the
necessary approvals with justifiable remedies," Lufthansa said.
It also said that anti-trust approval of the planned merger has
already been granted by the respective competition authorities in
the U.S., Canada, Turkey, Israel, Albania, Bosnia and Ukraine.
Regulatory clearance for Serbia is expected to be granted
shortly.
Austrian Airlines, which is currently controlled by the Austrian
state's holding company OeIAG, is being sold after it flew in huge
losses and a future stand-alone solution for the airline was deemed
unviable.
Lufthansa already signed the acquisition deal, but under the
condition that the merger passes an antitrust probe by the European
Commission and also that the commission approves a EUR500 million
state-aid injection into the airline.
Lufthansa pointed out several times that its acquisition offer
is valid until July 31.
Lufthansa is proposing to pay EUR4.49 a share for Austrian
Airlines' outstanding share. The takeover will also receive help
from the Austrian government in the form of EUR500 million in
restructuring aid.
-By Frankfurt Bureau, Dow Jones Newswires; +49 69 29725 500;
djnews.frankfurt@dowjones.com