UK Regulator Considers Korean-Asian Merger Proposal

The UK Competition and Markets Authority (CMA) is considering accepting a revised proposal on Korean Air's planned acquisition of Asiana Airlines, after it previously raised competition concerns about the deal.

The competition regulator states that there are "reasonable grounds for believing that the undertakings offered by Korean Air or a modified version of them, might be accepted by the CMA under the Enterprise Act 2002".

The CMA was due to decide on 28 November whether to accept the proposal or proceed with an in-depth phase two investigation.

Previously, the CMA raised concerns that the proposed Korean Air-Asiana Airlines merger would affect competition on passenger services on the London-Seoul route and cargo services between South Korea and the UK, as well as Europe.

It gave the airlines until 21 November to submit proposals addressing these concerns.

The merger is pending approvals from other competition regulators in the USA, China, Japan and the EU. It has been cleared by authorities in South Korea, Turkey, Taiwan, Vietnam and Australia, as well as in other jurisdictions including Thailand, the Philippines, Singapore and Malaysia, where regulatory approvals or reporting are not mandated.