DLA Piper Acted in Korean Air’s EU Commission Approval for Asiana Acquisition
DLA Piper has effectively represented Korean Air during the European Union’s thorough examination of its intended acquisition
DLA Piper Acted in Korean Air’s EU Commission Approval for Asiana Acquisition
DLA Piper has effectively represented Korean Air during the European Union’s thorough examination of its intended acquisition of Asiana Airlines Inc. The EU granted its approval, subject to compliance with the remedies proposed by Korean Air, as outlined in the EU Merger Regulation.
Korean Air is South Korea’s largest airline, operates as a full-service carrier with domestic and international services for passengers and cargo. The airline’s hub is located at Incheon Airport in Seoul, and is a member of the SkyTeam alliance.
Asiana Airlines, the second-largest airline in South Korea, operates as a full-service carrier with both domestic and international services for passengers and cargo. The airline’s primary hub is also located at Incheon Airport in Seoul, and is a member of the Star Alliance.
Both Korean Air and Asiana Airlines hold substantial positions within the European Economic Area (EEA). Consequently, the acquisition was formally notified to the European Commission on January 13, 2023. The Commission promptly initiated an in-depth investigation on February 17, 2023. Later, on May 17, 2023, the Commission issued a Statement of Objections to Korean Air, outlining its preliminary concerns related to competition. In response, Korean Air proposed several remedies that addressed both cargo and passenger aspects of the acquisition.
The proposed commitments comprehensively address the competition concerns highlighted by the Commission. Following a thorough market test, which involved gathering feedback from both customers and competitors, the Commission determined that these commitments effectively maintain competition in cargo and passenger transport between South Korea and the EEA.
DLA Piper Korea, with a core team spanning its Brussels, German, and London offices, provided crucial support to Korean Air during the EU merger control process. European co-counsel Jones Day and Allen & Overy, along with global coordinating counsel Kim & Chang, collaborated in this endeavour. Meanwhile, O’Melveny & Myers and Shin & Kim represented Asiana.
The DLA Piper teams were spearheaded by Competition and Antitrust partners Sarah Smith (London), Daniel Colgan (Brussels), Daniel Lee (Country Managing Partner, Korea) and Senior Lead Lawyer Andreas Politis (Brussels).