Antitrust chief halts El Al's Maman Cargo Terminals cargo deal

ISRAEL's Antitrust Authority director general Ronit Kan has blocked a deal between El Al and Maman Cargo Terminals pending a review of concerns that the tie-up could undermine air cargo competition.

In a letter to the CEOs of El Al and Maman, Ms Kan said the arrangement in which Maman would award El Al discounts and provides shares and options to the airline "is liable to constitute a cartel and an abuse by a monopoly," reports Israeli Globes Online business news portal.

Ms Kan told the two companies "to avoid implementing the agreement until the legality of the arrangement" is determined.

Under the agreement signed earlier this month, Maman would allot 15 per cent of its shares to El Al, half of them when the deal is signed, a quarter at the beginning of 2011, subject to the first extension of the agreement, and the final quarter at the beginning of 2012, subject to the second extension of the agreement, the report added.

Source: www.schednet.com