Dáil Éireann Debate, Tuesday - 17 October 2006
437 Ms O. Mitchell asked the Minister for Transport if he has requested the European Commission to examine the share offer recently made by Ryanair in relation to the purchase of Aer Lingus shares, in order to ascertain it’s compliance with EC competition law; and if he will make a statement on the matter. [32622/06]
View answer438 Ms O. Mitchell asked the Minister for Transport if he has requested from the European Commission that the Irish Competition Authority be permitted to investigate the proposed share offer by Ryanair of Aer Lingus shares in order to determine its compliance with EC competition law; and if he will make a statement on the matter. [32623/06]
View answerI propose to take Questions Nos. 437 and 438 together.
Ryanair announced their intention to make an offer for the issued share capital of Aer Lingus on the 5th October 2006. Ryanair is now required to post a formal offer, which will set out further details, within 28 days. Takeovers of listed companies are subject to regulatory controls – both under takeover rules and competition rules. The Irish Takeover Code prescribes the timetable and procedures under which bids are conducted.
There is a question as to whether jurisdiction for the purposes of merger clearance rests with the European Commission or Member States including Ireland. European jurisdiction applies where certain thresholds relating to the turnover of the entities concerned are exceeded both in aggregate terms and in at least three Member States. While it is expected that jurisdiction will lie with the European Commission the question of jurisdiction can only be resolved when a formal notification has been made and the Commission can access the necessary turnover information.
Under the applicable EU law, where it is established that a proposed merger falls within the jurisdiction of the European Commission, a Member State may nevertheless request that the case be referred back to it for the application of its own national merger laws in certain limited circumstances. It is a matter for the Irish Competition Authority, which is independent in the exercise of its functions, to form a view as to whether such a request is appropriate. The decision on whether or not to grant such national jurisdiction lies with the EU Commission. Officials of my Department will be meeting the Competition Directorate of the European Commission later this week to make an initial presentation on the proposed takeover bid.
