Ryanair
3 days ago (23 July) confirmed that, as part of its ongoing remedies
discussions with the UK Competition Commission (CC) in a case where
the CC have produced no evidence whatsoever of any lessening of
competition as a result of Ryanair’s 6½ year old 29% shareholding
in Aer Lingus, Ryanair has now offered the following undertaking to
the CC:
In
order to dispel the CC’s unfounded and invented “concern” that
Ryanair’s shareholding may prevent Aer Lingus from being acquired
by another EU airline, Ryanair will undertake to unconditionally sell
its 29% shareholding to any other EU airline that makes an offer for
Aer Lingus and obtains acceptances from 50.1% of Aer Lingus
shareholders.
The
above remedy is without prejudice to Ryanair’s vehement objection
to the CC’s manifestly false conclusion that Ryanair has influence
over Aer Lingus’ commercial strategy and/or that Ryanair’s 6½
year old minority shareholding in Aer Lingus has resulted in a
lessening of competition. This conclusion is flatly contradicted
by 6½ years of evidence, by the European Commission’s findings in
February 2013 that competition between Ryanair and Aer Lingus has
intensified, and by the evidence submitted even by Aer Lingus and the
Irish Government (to the EU), which proves that competition between
Ryanair and Aer Lingus intensified to the benefit of consumers over
the last 6½ years.
Ryanair’s
Robin Kiely said:
“It
is clear from the CC’s own Provisional Findings report that it has
found no evidence of any lessening of competition between Ryanair and
Aer Lingus. In fact, Ryanair’s recent (3rd)
offer for Aer Lingus was prohibited by the EU precisely because of
the evidence, submitted by both Aer Lingus and the Irish Government,
that competition between Ryanair and Aer Lingus has “intensified”
during the past 6½ years.
These
inconvenient facts have reduced the CC’s Simon Polito (Chairman)
and Roger Davis (Member) to inventing new and fantastical “concerns”
in order to justify their apparently premeditated and biased
“thinking” that Ryanair should be forced to sell down this 6½
year old minority stake. The only remaining “concern” they
can now dream up is that Ryanair’s 29% stake “might” prevent
another EU airline buying Aer Lingus; despite 6½ years of evidence
(and repeated public statements) that no other EU airline has any
interest in acquiring Aer Lingus.
In
order to remove any remaining shred of credibility from this CC
process and eliminate any doubt about this imaginary albeit
non-existent “concern”, Ryanair has now agreed that it will
unconditionally sell its 6½ year old minority stake to any other EU
airline which makes an offer for, and acquires more than 50.1% of,
Aer Lingus shares, at the same price and terms which are accepted by
these other 50.1% of Aer Lingus shareholders. This remedy
unconditionally removes any ability by Ryanair to block any future
takeover of Aer Lingus by another EU airline.
This
bogus CC “concern” has now been fatally undermined thereby
removing any requirement for a divestment of Ryanair’s 6½ year old
minority shareholding which even the CC now admits hasn’t given
Ryanair any influence, and Aer Lingus admits has led to intensified
competition to the benefit of the perhaps 1 or maybe 2 UK consumers
who even fly Aer Lingus.”