Qatar’s Virgin deal unlikely to bother ACCC but may still face regulatory turbulence
M&A lawyers and market analysts are fairly confident Qatar's Virgin play will get over the line, but unions have reacted far more cautiously.
Qatar Airways’ planned investment into Virgin Australia is unlikely to be opposed by the competition regulator but may still face significant foreign investment and national interest obstacles according to mergers and acquisitions lawyers and market analysts.
The two airlines on Tuesday announced a major deal for Qatar to acquire a 25% interest in Virgin from its private equity owner Bain Capital as part of a plan to create a more formidable, full-service challenger to Qantas.
Terms of the deal, which is subject to approval by both the Australian Competition and Consumer Commission and the Foreign Investment Review Board, were not disclosed.
“The deal is unlikely to raise competition concerns for the ACCC”, Baker McKenzie’s Australia Head of Competition Law, Georgina Foster told Capital Brief.
