Japan-based ANA Holdings has reportedly cancelled its plans to acquire a 49 percent stake in Burma-based Asian Wings Airways.
Reports say ANA, the parent company of All Nippon Airways, first announced last August that it would buy the stake for $25 million. But in a statement released this week, ANA said that among other reasons, increasing competition has forced the company to rethink its business strategies and cancel the takeover plans.
“Competition between new and old airlines in Myanmar [Burma] has intensified,” the company said.
ANA also said that the parties could not reach an agreement on capital participation, which also lead to the merger’s demise.
When the deal was first announced, it marked the first foreign investment into a Burma-based commercial airline.
Full content: BBC
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