PCC clears Dubai Aerospace acquisition of Nordic Aviation

Photo from Philippine Competition Commission/WEBSITE

MANILA, Philippines — The Philippine Competition Commission (PCC) has approved Dubai Aerospace Enterprise Ltd.’s proposed acquisition of aircraft leasing firm Nordic Aviation Capital.

This is after the parties sought regulatory clearance for the deal, which the antitrust body found would not significantly lessen competition in the local market.

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“After reviewing submissions from the merger parties and third-party feedback, the mergers and acquisitions office concluded that Dubai Aerospace’s acquisition of Nordic Aviation is unlikely to harm competition, due to their minimal market shares and the presence of other competitors in the industry,” the PCC said in a statement.

The government’s anti-trust body also cited the dynamic nature of the global aircraft leasing market, adding that this made it attractive for additional players to enter.

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Review process

The PCC’s mergers and acquisitions office began a phase 1 review of the transaction on March 20.

This initial evaluation assesses whether the proposed acquisition could raise competition concerns that might require a deeper Phase 2 investigation under the Philippine Competition Act (PCA).

After thoroughly reviewing the submissions from both companies as well as feedback from third parties, the Commission reached its decision on April 22.

Dubai Aerospace is owned by the Investment Corporation of Dubai, the principal investment arm of the government of Dubai.

Meanwhile, Irish-based aircraft lessor Nordic Aviation is owned by NAC Holdings Limited, a consortium backed by insurance companies, asset managers and other financial institutions.

Both companies are key players in the global dry leasing of aircraft.