Edinburgh-based aviation logistics and news distribution firm John Menzies said it reached an agreement with the UK’s Competition and Markets Authority (CMA) to complete the acquisition of Orlando, Florida-based aviation and fuel services company ASIG from BBA Aviation for $202 million.
Last December, the CMA said the merger “may lead to a substantial lessening of competition in the supply of ground handling services at Aberdeen Airport including baggage, ramp, passenger, airside cargo handling and de-icing.”
But on Wednesday, Menzies said agreement has been reached with the CMA “to hold the ASIG operations at Aberdeen Airport separately in order to satisfy the requirements of the CMA to ultimately divest those operations and obtain UK merger clearance.”
Menzies Aviation managing director Forsyth Black said: “I am delighted to announce the completion of our acquisition of ASIG.
“This is a truly transformational deal …
“Whilst ground handling is at the core of our business ASIG brings exciting new product lines to the group giving us great opportunities to further strengthen the aviation business.”
Menzies announced last September it agreed to buy ASIG in a deal that would make the Edinburgh firm the world’s largest interplane fueller.
Menzies said in September the deal — its biggest ever transaction — would double the size of Menzies Aviation’s existing North American operations and grow Menzies Aviation’s staff numbers from 23,000 to 31,000.