MAVCOM issues final decision on proposed merger in the aviation sector

23 January 2025

On 8 November 2024, the Malaysian Aviation Commission (“MAVCOM”) issued a final decision in respect of an anticipated merger by Gateway Development Alliance Sdn. Bhd., Pantai Panorama Sdn. Bhd., Kwasa Aktif Sdn. Bhd., and GIP Aurea Pte. Ltd. in relation to the proposed privatisation of Malaysia Airports Holdings Berhad. The anticipated merger was voluntarily notified to the MAVCOM.

MAVCOM concluded that the anticipated merger would not infringe section 54 of the Malaysian Aviation Commission Act 2015 (“MAVCOM Act”) which prohibits mergers that have resulted or may be expected to result in a substantial lessening of competition. MAVCOM’s decision is subject to the parties entering into a shareholders’ agreement which ensures that the parties, post-merger, will not engage in commercial activities relating to aviation services that would infringe the prohibitions under the MAVCOM Act.