World Courant
The article continues beneath the commercial
The Norwegian Competitors Authority has been scrutinizing the Norwegian takeover of Widerøe all through the autumn, particularly after it provisionally declared ‘no’ to the takeover in mid-September.
Since then, November 17 is the deadline for a choice on whether or not Norwegian can purchase the airline or not. It now turns into clear that the Norwegian Supervisory Authority will ban the takeover because it nonetheless fears that competitors in Norwegian aviation might be considerably weakened if the takeover goes forward.
The weakened competitors is highlighted, amongst different issues, on routes the place the 2 firms at present compete with one another, for instance the direct routes between Bergen and Stavanger and between Bergen and Trondheim.
The authority has now set a brand new deadline of January 3, 2024 for a last choice.
– We see that there’s a actual danger that competitors available in the market shall be weakened in a approach that results in larger ticket costs and worse route gives for Norwegian air passengers, competitors director Tina Søreide mentioned in a message.
Competitors director Tina Søreide. (Picture: Paul S. Amundsen)– Stunned
Norwegian CEO Geir Karlsen says he’s shocked by the authority’s reasoning and disagrees with the preliminary conclusion.
– Primarily based on the information of the case, I’m optimistic concerning the last end result of the applying course of. We are going to now first delve into the preliminary evaluation of the Competitors Authority earlier than we reply to it, he says in a press launch.
Widerøe CEO Stein Nilsen can be not significantly proud of the announcement.
− I’m very upset by at this time’s message from the competitors authorities. With Norwegian we get a strong Norwegian industrial proprietor who desires to additional develop each firms. This gives completely crucial public transport within the neighborhoods, he says in a press launch.
The regulator additionally writes that Norwegian has proposed corrective measures relating to floor companies, however that this has not been sufficiently assessed to approve the acquisition.
On July 6, Norwegian surprisingly introduced that it was placing NOK 1.1 billion on the desk to purchase Widerøe. No participant had beforehand recognized the 2 gamers as merger companions, and additionally it is the primary time {that a} low-cost airline in Europe has chosen to purchase a regional airline with a really completely different route sample, smaller plane, larger price ranges and As well as, the funds had been the weak lately.
Norwegian CEO Karlsen pointed to an estimated NOK 200-300 million in annual synergies and improved profitability in Widerøe from the acquisition. Each the Norwegian boss and Widerøe boss Nilsen made it clear in July that they don’t seem to be rivals.
The article continues beneath the commercialThe Norwegian Competitors Authority mentioned in September that the acquisition needs to be fastidiously investigated as a result of there was “a danger that competitors available in the market could be weakened if Norwegian had been allowed to purchase Widerøe”.
The article continues beneath the commercialPresent all positions
SAS has warned
In early October it was introduced that rival SAS, through a letter from the corporate’s legal professionals, argued that “competitors shall be considerably lowered” if Norwegian is allowed to purchase Widerøe.
SAS identified a variety of elements that affect competitors:
SAS believes that the Norwegian aviation market is exclusive in Europe as a result of so many passengers make a stopover on the way in which to their vacation spot. Widerøe has constructed a big hub in Bergen with each propeller-driven plane and smaller jets, and competes with Norwegian and SAS each regionally and nationally, in line with SAS. SAS believes that Widerøe has a monopoly on state tender routes, and a “de facto” monopoly on all short-haul airports, together with on industrial routes. SAS believes that main buyer offers within the company and public sectors are in danger if two gamers acquire an excessive amount of dominance. SAS additionally believes that the marketplace for floor dealing with companies shall be weakened if Norwegian is allowed to buy Widerøe. SAS believes that, if the acquisition is accepted, Widerøe and Norwegian will have the ability to collaborate on timetables earlier than SAS and different gamers can entry the identical info and plan an equally environment friendly route sample.Now the architect’s sign constructing at one in every of Norway’s busiest intersections is being demolished
Gert Walter Thuesen’s sign constructing has been on the Sinsenkrysset for greater than 50 years, however now it’s over: – Within the very highest class of Norwegian concrete structure, says the structure professor.
04:06
Printed: 13.11.23 — 02:08
*(Circumstances)Copyright Dagens Næringsliv AS and/or our suppliers. We wish you to share our circumstances through hyperlinks that lead on to our pages. Copying or different use of all or a part of the contents could solely be made with written permission or as permitted by legislation. For additional situations see right here.
The Norwegian Competitors Authority will ban the Norwegian takeover of Widerøe: – We’re shocked
World Information,Subsequent Large Factor in Public Knowledg
#Norwegian #Competitors #Authority #ban #Norwegian #takeover #Widerøe #shocked
