Banco Sabadell: The EC said yesterday it is launching a detailed (phase II) investigation into Iberia’s proposed takeover of Air Europa as it wants “the transaction not to adversely affect prices or quality of services”, according to Vestager.
The EC now has 90 working days (until 7 June 2024) to take a final decision, provided it does not request additional information from the parties involved, in which case the clock would be stopped (we cannot determine at this stage whether this will happen or not and how long it will take). In addition, at this stage Iberia will present its remedies package (already rumoured) to try to pave the way and get the green light for the deal.
Assessment: News with no impact as the opening of phase II does not prejudge the outcome and it was known that the EC’s analysis of the operation would be in-depth. In addition, it does not change the already known timetable (we expect the final decision in 4Q24).