UK: Competition regulator orders Ryanair to sell most of its stake in Aer Lingus

The UK competition authority has told Ryaniar for a second time that it must sell most of its stake in rival Aer Lingus despite a potential takeover bid by British Airways parent IAG.

Ryanair’s chief executive Michael O’Leary asked the Competition and Markets Authority to re-examine the original ruling made two years ago which ordered the airline to take its stake down to 5 percent.

The authority said in 2013 that Ryanair’s stake in Aer Lingus could potentially prevent another company from taking over the Irish airline. In February, Ryanair appealed this, saying IAG’s bid for Aer Lingus this January suggested otherwise.

On Friday the Competition Markets Authority said it saw no reason to change its mind. Simon Polito, chairman of the Ryanair and Aer Lingus Inquiry Group, said: ‘Without any action to reduce its shareholding, Ryanair would remain a significant hurdle to any merger because it has an incentive as a competitor.’

Full Content: The Irish Times

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