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OFT refers anticipated acquisition of Exeter and Devon Airport Ltd by Macquarie Airports Ltd and Ferrovial Aeropuertos SA

189/05    11 October 2005   

The OFT today referred the anticipated acquisition of Exeter and Devon Airport Ltd by Macquarie Airports Ltd and Ferrovial SA to the Competition Commission (CC).

The OFT has decided that the test for reference is met in relation to the supply of airport infrastructure services to airlines in the South West of England.

Penny Boys, OFT Executive Director, said: 'The merger raises concerns about a loss of competition between Exeter International Airport and Bristol International Airport which may ultimately adversely affect the choice of low-cost and charter flights for air passengers in the South West of England.'

The acquisition was referred to the OFT by the European Commission under Article 9 of the EC Merger Regulation on 8 August 2005 following a request by the OFT (see press release 132/05).

The CC is expected to report by 27 March 2006.

NOTES

1. Macquaire Airports Ltd and Ferrovial Aeropuertos SA jointly own Bristol International Airport. Exeter International Airport is currently owned by Devon County Council.

2. The reference test - the OFT has a duty to make a reference to the CC if the OFT believes that it is or may be the case that arrangements are in progress or in contemplation which, if carried into effect, will result in the creation of a relevant merger situation; and the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.

3. Under the Enterprise Act 2002 a relevant merger situation is created if two or more enterprises have ceased to be distinct enterprises; and the value of the turnover in the United Kingdom of the enterprise being taken over exceeds £70 million; or as a result of the transaction, in relation to the supply of goods or services of any description, a 25 per cent share of supply in the UK (or a substantial part thereof) is created or enhanced.

4. The CC may extend the 24 week period within which it is required to publish its report by no more than eight weeks if it considers that there are special reasons why the report cannot be published within that period.

5. The text of this decision will be placed on the mergers section of this website as soon as is reasonably practicable.

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