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Australian watchdog flags competition concerns over Qantas-Alliance deal

Published 01/08/2019, 09:44 am
Updated 01/08/2019, 09:50 am
© Reuters.  Australian watchdog flags competition concerns over Qantas-Alliance deal
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Aug 1 (Reuters) - Australia's competition regulator raised concerns on Thursday over Qantas Airways Ltd's QAN.AX acquisition of a 19.9% stake in Alliance Airlines, saying Qantas had not sought informal clearance from the regulator before the deal.

"We consider this shareholding has the potential to impact Alliance's future growth and its ability to be a strong competitor," Rod Sims, chair of the Australian Competition and Consumer Commission (ACCC), said in a statement.

ACCC said Qantas had indicated it would not acquire any further stake in Alliance until the antitrust regulator had completed its investigation into the original acquisition.

Qantas said in February it had acquired 19.9% of Alliance Airlines, a unit of Alliance Aviation Services Ltd AQZ.AX , for A$60 million ($41.09 million). = 1.4601 Australian dollars)

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