U.S. weighs suit against Korean Air’s planned acquisition of Asiana -Politico

(Reuters) -The U.S. Justice Department is considering suing to block Korean Air’s planned acquisition of Asiana Airlines, U.S. news website Politico reported on Thursday.

The U.S. Department of Justice has been investigating the November 2020 deal for roughly two years, and is concerned that it will hurt competition on overlapping routes to the United States, the report said citing three people with knowledge of the deliberations.

The administration is also concerned the merger would place too much control of cargo transportation of key goods like microchips in the hands of one company, the report said, adding that no decision has been made on whether to bring a case.

EU antitrust regulators also said on Wednesday that Korean Air Lines’ proposed acquisition of rival Asiana may restrict competition in passenger and cargo air transport services between Europe and South Korea.

The deal, announced by Korean Air in late 2020, would see it become the biggest shareholder in indebted Asiana, the biggest shake-up in the country’s aviation industry in nearly three decades.