The Australian Competition and Consumer Commission (ACCC) will not oppose the proposed acquisition by Virgin Australia of 60% of Tiger Australia.
The proposed acquisition will allow for the creation of a Tiger Australia joint venture between Virgin Australia and Tiger Australia’s Singaporean parent, Tiger Airways Holdings. Both parties strongly believe the proposed acquisition will increase competition in the market to the benefit of Australian travellers.
Gilbert + Tobin acted for Virgin Australia and Tiger Airways on obtaining informal clearance for the proposed acquisition from the ACCC.
The Gilbert + Tobin team was led by Competition and Regulation partner Luke Woodward and senior lawyers Charles Coorey and Louise Klamka.
“Gilbert + Tobin is delighted to have been the competition law advisor to both parties in attaining a favourable ACCC outcome.” Luke Woodward said. “The transaction gave rise to a number of complex competition law and economic issues, in particular, the extent to which Virgin Australia’s participation in the Joint Venture would strengthen Tiger Australia and promote competition in the budget travel segment. These issues were subject to thorough and extensive testing by the ACCC over the last 6 months. Both the parties are pleased that the ACCC has given now them the opportunity to transform Tiger Australia into a competitive and sustainable low cost carrier.”
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