Commission approves proposed acquisition of joint control over Bristol Airport by OTTP and Macquarie
11-Dec-2009 The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Bristol International Airport Limited of the UK by Ontario Teachers' Pension Plan Board (OTTP) of Canada and Macquarie Group of Australia. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
OTTP is a Canadian pension fund which invests in a wide range of different assets and which already has a stake in Birmingham International Airport in the UK as well as a non-controlling stake in Bristol Airport. The Macquarie Group is a global provider of banking, financial, advisory, investment and funds management services. It already has a stake in Bristol Airport which is held by Macquarie European Investment Fund L.P. (MEIF) of Guernsey, the Channel Islands, a wholesale investment fund established to invest in infrastructure and related businesses. As a result of the proposed transaction, OTTP would increase its stake in Bristol Airport, resulting in joint control by OTTP and Macquarie over Bristol Airport.
The Commission's examination of the proposed transaction showed that the catchment areas of Bristol Airport and Birmingham Airport overlap only to a minor extent and the competitive constraints that both airports exert upon each other are therefore limited. The Commission's investigation revealed that airlines often do not consider the two airports as close substitutes to each other and that several other alternative airports also exist. The Commission therefore concluded that the proposed transaction would not raise competition concerns.