All eyes on EU after China approves Korean Air's Asiana acquisition

Korean Air's acquisition of Asiana Airlines now seems to depend heavily on the European Union's decision, as China preemptively gave its approval for the business deal, according to aviation industry experts, Tuesday. The Ministry of Commerce of the People's Republic of China (MOFCOM) announced on Monday that it approved the deal between the two Korean air carriers. The Chinese antitrust regulator's decision came after Korean Air submitted remedies proposing to transfer slots to any new airline wishing to start air services on nine routes where both Korean Air and Asiana Airlines operate. As a result, China became the first foreign country to give its approval for the acquisition, among countries where reporting for such deals is mandatory. This was in contrast to most industry insiders' expectations, who felt that Korean Air would face difficulty in winning approval from China. "We expect MOFCOM's approval of the business combination to play a positive role in the review process of the remaining competition authorities," Korean Air said. The company is still waiting for approval from the US, the EU and Japan, where reporting is mandatory, as well as final approval from the UK, where reporting is arbitrary. Given that the UK Competition and Markets Authority (CMA) accepted remedies submitted by Korean Air earlier this month, it is expected to give its approval during Q1 next year. The US is also expected to allow the acquisition in the near future, as the Department of Justice said last month that it needs time to review the matter, instead of disallowing the deal. Japan is unlikely to reject the deal, because various budget carriers' use of most of the country's flight routes has reduced concerns over a possible monopoly. Korean Air, however, still needs to overcome the strict review of the EU, which has a long track record of opposing large-scale acquisitions.<br/>