UK to investigate Ryanair’s Aer Lingus stake
The Office of Fair Trading (OFT) in the UK has said it is not too late to examine Ryanair’s 2006 purchase of a stake in rival airline Aer Lingus.
The OFT confirmed yesterday that it wrote to Ryanair informing it was “in time” to review the purchase of its minority stake.
Ryanair said it intends to appeal the decision and maintains the OFT are “out of time” in enquiring the matter.
The EU Competition Commissioner has already investigated the matter and confirmed that Ryanair would not have to divest its shareholding since it is not a controlling stake. Ryanair does not have “decisive influence” over Aer Lingus, it also said.
However, once the EU courts made their decision, the OFT were legally entitled to make a move to investigate.
In a statement yesterday, Ryanair chief Michael O’Leary said the OFT were wasting time and public resources.
“This OFT query into a failed merger between two non-UK companies some five years after the offer lapsed and some four years after the EU Commission investigated and confirmed that Ryanair has no de jure or de facto control over Aer Lingus is a baseless, wild goose chase by the OFT,” he added.
However, Aer Lingus welcomed the OFT’s announcement that it is “in time” to investigate Ryanair’s minority shareholding in the airline.
The OFT has the power to force Ryanair to divest some or all shares if it finds that it has “material influence” over decisions that could raise competition issues.