European Commission prohibits the merger of Olympic Air with AEGEAN
The European Commission following an investigation which lasted 10 months, announced today its decision to prohibit the proposed transaction with regards to the merger of Olympic Air with AEGEAN, as agreed and announced on 22/02/2010.
The transaction had been agreed by the main shareholders of AEGEAN and MARFIN INVESTMENT GROUP on February 22, 2010, subject to the approval by the European Competition Commission. Given the aforementioned Decision, the agreement of February 22, 2010 between the two parties is dissolved.
Commenting on this development, Mr. Theodore Vassilakis, Chairman of AEGEAN said : “Throughout last year we presented to the European Commission the benefits of the merger for our companies, our passengers and our country’s economy. We also offered important commitments to safeguard consumers as well as measures to facilitate the entry of new competitors in the domestic market. Unfortunately, the EC decided to prohibit the agreement. An important opportunity for a consolidated representation in the European aviation market has been lost. We will adjust and continue. Our track record shows that we can succeed through challenging times.”
Mr. Andreas Vgenopoulos, Chairman of the BoD of MARFIN INVESTMENT GROUP, made the following statement: «The EC Decision will have negative consequences for consumers as well as our country’s economy while it will benefit foreign competitors. Obviously we, as well as Aegean, will continue to do our best for the benefit of our staff, our shareholders and our passengers».
The companies will review the final document of the EC decision which was received today and following internal consideration and consultation with their advisers will decide for their possible further actions within the framework of existing legislation.