The European Commission today cleared Travelport's acquisition of global distribution system competitor Worldspan, paving the way for a completed transaction in the third quarter.
The European Commission, however, today concluded that the deal is "unlikely to result in unilateral price increases by the merged firm," while also noting that reducing the number of GDSs in the market from four to three would not yield "coordinated behavior" among competitors. Travelport's Galileo is the second-largest GDS in the European Union, a ranking maintained through the acquisition of Worldspan, the fourth largest. Amadeus would remain the largest GDS in the European Union, with Sabre holding its position as the third largest.
The U.S. Federal Trade Commission in July also gave its blessing to the Travelport-Worldspan deal, which the companies announced in December. Travelport said the $1.4 billion acquisition would enable the GDSs to integrate technological infrastructures and sales forces
(BTNonline, Dec. 7, 2006).