/Sabre merger with Farelogix blocked by UK authority

Sabre merger with Farelogix blocked by UK authority


Published on Thursday, April 9, 2020

 

GDS giant Sabre has been prevented from buying rival Farelogix by the Competition and Markets Authority (CMA) in the UK.

 

The company had earlier beaten off a challenge to the merger by the US Justice Department (DoJ), which had claimed that it breached anti-trust rules.

 

However, the CMA said it was blocking the merger ‘in its entirety’ due to concerns that it would result in a ‘substantial’ lessening of competition within the supply of merchandising solutions worldwide.

 

The DoJ had also argued that Sabre’s takeover of Farelogix would further cement its dominant position in the airline booking market, of which it claims it controls about half. It argued the merger would result in higher prices, reduced quality and less innovation for airlines.

 

It claimed Sabre wanted to acquire Farelogix as it is a threat to its ‘outdated’ GDS technology.

 

Sabre claimed that the two were not directly competing and following the ruling in its favour, Sabre spokeswoman Kristin Hay said: “This federal court ruling supports our view that the Sabre-Farelogix acquisition is not anti-competitive.”

 

Nevertheless, the CMA said its seven month investigation had concluded that the merger would lead to a loss of completion and blocked the move for 10 years.

 

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