Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Australian regulator won’t stop Air NZ lifting Virgin stake

Australian regulator won’t stop Air NZ lifting Virgin stake

Sept. 5 (BusinessDesk) - The Australian Competition and Consumer Commission won’t stop national carrier Air New Zealand from lifting its stake in Virgin Australia, two days after extending their airlines’ trans-Tasman alliance.

The Australian antitrust regulator said it won’t oppose Air NZ’s proposal to lift its investment in Virgin to as much as 26 percent, the ACCC said in a statement. The New Zealand airline spent A$72 million to increase its Virgin stake to 23 percent in June in a series of off-market transactions, and said it might creep higher to about 26 percent.

“The ACCC concluded that the proposed acquisition would not be likely to result in a substantial lessening of competition in any market as it would not provide Air New Zealand with the ability to control or materially influence Virgin or significantly affect Air New Zealand’s incentives to compete with Virgin,” commissioner Jill Walker said.

Air New Zealand has spent about A$273.6 million since it first took a 15 percent stake in Virgin two years ago, including a top-up last year to hold its then-stake at 19.99 percent. Virgin’s shares last traded at 42 Australian cents on the ASX, valuing Air New Zealand’s stake at about A$246.3 million.

Air New Zealand’s shares gained 0.4 percent to $1.415 today, and have climbed 8.9 percent this year.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Auckland Airport: North American Touch Downs Make AA Most Connected In Australasia
The return of American Airlines, the world’s largest airline, announced today has cemented Auckland Airport’s title as the Australasian airport with the most non-stop connections to the United States and Canada... More>>

Reserve Bank: Monetary Conditions Tighten By More And Sooner

The Monetary Policy Committee today increased the Official Cash Rate (OCR) to 2.0 percent. The Committee agreed it remains appropriate to continue to tighten monetary conditions at pace to maintain price stability... More>>

The Download Weekly: Vodafone FibreX back in court

Vodafone and the Commerce Commission head back to court over FibreX in a week the TCF issues broadband marketing codes that should avoid similar problems in the future... More>>

Kiwibank: Savers To Benefit From Higher Returns Following OCR Rise

Following market movements Kiwibank is pleased to increase the interest rate and rates of return on its savings accounts... More>>

Fonterra: Provides 2022/23 Opening Forecast Farmgate Milk Price & Business Performance Update
Fonterra today announced its 2022/23 opening forecast Farmgate Milk Price and provided an update on its third-quarter performance... More>>

Stats: Quiet Start For Retail In 2022
The volume of retail sales was relatively unchanged in the March 2022 quarter, following a strong increase in the December 2021 quarter, Stats NZ said today... More>>