UK Blocks Sabre Acquisition of Farelogix as Anticompetitive
Skift Take
Sabre's arguments that UK regulators would merely fall in line if a U.S. court backed Sabre's merger with Farelogix were naive. The UK ruling was essentially correct about the proposed deal stifling innovation, and somewhere airlines are quietly celebrating the ruling.
A few days after a U.S. federal court refused to stand in the way of Sabre's pending $360 million acquisition of rival Farelogix, the UK Competition and Markets Authority blocked the merger on the grounds that it would stifle innovation and competition.
"We recognise that our decision in this inquiry comes at a time of uncertainty and disruption in the global travel industry due to the COVID-19 pandemic," said Martin Coleman, chair of the UK competition body's inquiry group in a statement. "It remains important that we protect competition among businesses that provide services to airlines and the benefits such competition can bring for airlines and passengers. We never take decisions to block mergers lightly and in this case the evidence of harm is clear."
A Sabre spokesperson, responding to the ruling, said the company would mull its next steps.
"We are disappointed by the CMA's findings, particularly in light of the U.S. federal court's ruling, which found that Sabre’s acquisition of Farelogix is not anti-competitive a
