CMA Sabre / Farelogix merger inquiry
On 16 August 2019, the Competition and Markets Authority (CMA) has decided, on the information currently available to it, that it is or may be the case that the proposed takeover of Farelogix Inc (Farelogix) by Sabre Corporation (Sabre) may be expected to result in a substantial lessening of competition within a market or markets in the UK.
“Sabre is 1 of 3 large and well-established suppliers of such systems worldwide, including in the UK. The CMA’s initial, Phase 1, investigation has found that Farelogix is much smaller at present but is an important competitive threat to Sabre and recognised as an important innovator with a disruptive business model. Farelogix has already had a significant impact in the industry through its use of new and innovative technology to distribute more sophisticated airline products and, without the merger, would have been expected to further develop and grow the use of its technology in future.
Should the deal go ahead as planned, the CMA is concerned that Sabre would not face enough competition from other suppliers, leading to higher prices or lower quality services, as well as reduced innovation in the industry generally, which could have adverse effects for airlines, travel agents and consumers across the UK.”
In-depth Phase 2 investigation
On 2 September 2019, the CMA has referred the anticipated acquisition by Sabre Holdings Corporation of Farelogix Inc. for an in-depth investigation. The final report of the Phase 2 decision will be published early February 2020.
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