UK Competition Watchdog Investigating Sabre's Takeover Of Farelogix
Britain's competition watchdog has launched an investigation into US travel technology provider Sabre Corp's proposed $360 million (€328 million) acquisition of smaller rival Farelogix Inc, saying the deal could raise prices for platforms used by airlines and travel agents to sell tickets.
The UK Competition and Markets Authority's investigation follows an initial review of the deal by the regulator last month and comes two weeks after the US Justice Department sued to block the merger, escalating pressure on the companies to call off the combination.
Both Sabre and Farelogix provide information technology systems that allow hotel and airline bookings through travel agencies.
Potential Higher Prices
"We've found Sabre's proposed takeover of Farelogix could lead to higher prices for IT systems used by airlines & travel agents...," the UK watchdog said, adding that it had referred the deal "for an in-depth investigation."
Last month, Sabre, which planned to close the merger by August 21, extended the termination date of their acquisition agreement to April 30 to allow time for any challenges to be resolved.
Southlake, Texas-based Sabre reported 2018 revenue of $3.9 billion (€3.6 billion), while Miami-based Farelogix had $42 million in revenue last year.