Korean Air's proposed pickup of a majority stake in Asiana is worth about $1.6bn
The ACCC has granted unconditional clearance to the proposed merger between Korean Air Lines Co., Ltd. and Asiana Airlines, Inc.
Under the deal, Korean Air, advised by Gilbert + Tobin (G+T), will acquire a majority interest in Asiana that is worth about $1.6bn. The merger brings together what the ACCC described as the only two providers of direct air passenger services between Sydney and Seoul.
Nonetheless, the commission noted that Jetstar and Qantas are set to begin traversing the same route effective November and December. The airlines will also be offering direct air cargo services via belly freight on air passenger services.
Thus, the ACCC concluded that the Korean Air/Asiana combination would not significantly impact competition in the field.
“The airline industry has experienced significant disruption in the past few years. We are delighted to have worked together with Korean Air to achieve such a fantastic result, enabling Korean Air and Asiana to continue to provide a competitive offering to and from Australia,” said Elizabeth Avery, G+T’s lead partner on the deal and its head of competition and regulation.
Avery was supported by special counsel Rebecca Dollisson and lawyers Johnathon Geagea, Jacqueline Reid and Aaron Park.
Even though the merger has been approved by the ACCC, it still requires regulatory approval in other jurisdictions.
G+T also acted for sovereign defence, advanced manufacturing and sustainment group ASDAM on its acquisition of global MRO company TAE Aerospace and Australian MRO company RUAG Australia. Partner Alastair Corrigall from the corporate advisory team worked on the transaction with lawyers Muli Zhou, Kim Nguyen and Juliette van Ratingen as well as specialists from the firm.
