UK competition regulators have seemingly cleared the acquisition of helicopter lessor Macquarie Rotorcraft by rival SMFL LCI Helicopters (SMFLH), lifting a restriction that prevented any integration between the two businesses.
Although the Competition & Markets Authority (CMA) investigation into the deal continues, the revocation of the so-called initial enforcement order (IEO) – in place since early October – appears to signal the agency’s direction of travel.
Announcing the move on 29 October, the regulator said it came “in view of the evidence available to the CMA at this stage”.
SMFLH – a joint venture between Sumitomo Mitsui Finance & Leasing and LCI Investments – announced in March that it intended to purchase Macquarie, effectively triggering the CMA action.
On 8 September, the CMA re-issued an IEO preventing the two companies from joining their operations, which came into force on 8 October.
Comments on the proposed transaction closed on 7 October, with the CMA announcing on the same day that it had launched a phase one merger inquiry, with a decision expected no later than 3 December.
If a more in-depth phase two investigation is launched, which now seems unlikely, the CMA would have another 26 weeks in which to conclude the probe, potentially drawing out the acquisition process until early June.
Assuming no remedies are required to clear the transaction, it will create a lessor with more than 300 helicopters owned, managed or on order. LCI will manage the combined business.
