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EU Approves Lufthansa Catering Deal

 |  April 6, 2020

The European Commission has approved, under the EU Merger Regulation, the proposed acquisition of the European business of Lufthansa Service Group (“LSG”) by Gategroup. The approval is conditional on full compliance with commitments offered by Gategroup.

As a result of this transaction, Gategroup would acquire sole control of the European business of LSG (“LSG EU”) by way of purchase of shares and assets. The transaction excludes LSG’s retail on-board business.

Executive Vice-President Margrethe Vestager, in charge of competition policy, said, “The markets for in-flight catering services need to function well in order to allow airlines that operate in Europe, to provide air transport services to passengers. In particular in these difficult days due to the coronavirus outbreak, we need to ensure that competition remains once the market picks up. With our approval today of Gategroup’s purchase of the European business of LSG subject to remedies we make sure that airlines will continue enjoying quality and innovative in-flight catering services at fair prices  to the benefit of passengers.”

The Commission’s investigation found that the transaction, as initially notified, would have led to a quasi-monopoly or left at most only one remaining viable competitor in the markets for in-flight catering services at Brussels, Berlin-Tegel, Cologne, Dusseldorf, Frankfurt, Hamburg, Hannover, Munich, Paris Charles de Gaulle, and Rome Fiumicino airports.

Full Content: European Commission

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