The Federal Trade Commission gave antitrust
clearance to Travelport's proposed acquisition of Worldspan, but
the $1.4 billion deal still has to be approved by the European
Commission.
Travelport has
stated that it intends to merge Worldspan into Galileo, one of its
subsidiaries, to "establish a more effective and efficient travel
distribution provider."
A combined
Worldspan-Galileo would also create the second-largest GDS firm in
Europe, behind Amadeus.
Among the questions
before the European Commission, the European Union's executive
branch, is whether the acquisition will pose competitive concerns
for suppliers and travel agents, particularly those in Belgium,
Hungary, Italy, the Netherlands and the U.K.
The E.C. has said
it was assessing "the effects of the reduction of the number of
GDSs from four to three and the elimination of competition between
Galileo and Worldspan ... in particular whether prices for GDS
services to travel service providers would increase." The
commission is expected to conclude its inquiry by Sept.
13.
For its part,
Travelport said it was "optimistic that the pending E.C. approval
would be concluded in time to permit the transaction to close in
the third quarter of 2007."
Travelport is also
the parent of Orbitz Worldwide, Gullivers Travel Associates and
other travel firms.
To
contact the reporter who wrote this article, send e-mail to [email protected].