Ryanair loses EU court battle over blocked Aer Lingus takeover

Irish airline Ryanair Holdings lost its court battle over whether the carrier can take over rival Aer Lingus Group, the Wall Street Journal reported.

The European Union's (EU) General Court ruled that the European Commission correctly blocked Ryanair's takeover bid for the former state-run carrier.

The court said the dominant positions that would have been created on certain routes under a merger were sufficient grounds for the commission, the EU's executive arm, to have blocked the deal.

The court also upheld the commission's refusal to order Ryanair to divest itself of its minority shareholding in Aer Lingus, saying the shareholding didn't confer control of the company.

Aer Lingus had maintained that Ryanair's holding gave the carrier too much control over Aer Lingus's business plans.

Following the privatisation of Aer Lingus in 2006, Ryanair began a takeover attempt, which was blocked by the EU's antitrust authorities on the grounds that it would reduce competition in Ireland to an unacceptable level.

Despite the failed bid, Ryanair was left holding a sizable minority stake in its Irish rival, which today stands at about 29 percent – close to the threshold at which Ryanair would be legally obliged to make an offer for the entire company.
(Source:www.cargonewsasia.com)