AIRTOURS has told shareholders in its offer document that it is confident its bid for First Choice will receive “rapid clearance” by the European Commission.
But the bid details must now be scrutinised by officials in Brussels in a procedure that can take as long as four months.
Airtours group finance director Tim Byrne said he believes the deal will be approved within four to six weeks. The clock started ticking on Thursday when Airtours told the EC of the intended deal.
After the Commission has been told of the planned takeover, it will begin an initial examination and detailed appraisal, requesting information and a site investigation. Within three weeks of EC notification, the UK’s Competition Commission can request referral on competition grounds.
Within one month, a decision can be reached. The European Union will indicate either that it does not feel a decision is its responsibility; that it approves the take-over; or that it has serious doubts about it. If the latter decision is made, phase two kicks in where more details are requested.
Within the month, the EU can also declare the takeover “incompatible” in which case it issues a statement of objections and Airtours can respond at a hearing. Alternatively the commission can go to an advisory committee to get an opinion. At the end of four months, a final decision must be reached. Should it disallow the takeover, Airtours has two months to appeal to the European Court of Justice.