The Fair Trading Commission (FTC) has given the green light to GCG, owned by Goddard Enterprises Limited, to acquire Seawell Air Services, which previously belonged to the Massy Group.
In addition, the Barbados regulators did not attach any conditions to the approval, determining that competition in the market would not be compromised by the development.
The local competition and consumer rights regulator said that “on the basis of the evidence presented, the Commission has determined that the proposed transaction does not create competition concerns”.
Additionally, in the 11-page FTC decision, it also found that â. . . Since the merger does not result in a change in concentration levels – which does not create or strengthen GCG’s market position – the proposed transaction will not significantly impede competition. “
In May last year, GCG and Seawell Air Services petitioned the FTC for approval of the acquisition that would have concentrated greater market power in groundhandling and related services in the hands of the group. GEL.
Seawell Air Services (SAS) and GCG both operated out of Grantley Adams International Airport (GAIA).
After SAS terminated its services at GAIA and laid off its employees in October 2019, GCG began operations in November 2019, establishing a temporary agreement to operate in markets that SAS left.
Goddard Enterprises also operates at GAIA through its subsidiary GCG Catering which serves commercial and private airlines.
As such, the FTC has said that, by definition, GCG’s acquisition of SAS is considered a subsidiary merger – a form of “horizontal merger because the applicants are potential competitors.”
In their request for approval of the purchase of SAS, it was disclosed: âThe decision to exit the groundhandling activity was taken due to the below-expected performance of the airport groundhandling activities. from Barbados and Antigua.
âThis led to GCG’s agreement to purchase SAS assets, including its parking and theft business.
GCG believes the acquisition would help strengthen its regional presence for groundhandling services.
“After examining the request, the FTC in its decision, determined under the Fair Competition Act:” That the result of the acquisition by GCG Ground of the assets of Seawell Air Services, does not diminish competition in the air transport market. assistance and-fly and auto maintenance services in Barbados, and accordingly approves the transaction unconditionally under Section 20 of the Act. “
The FTC has revealed that GCG Ground Services (Barbados) Limited is 100% owned by GCG Ground Services (St Lucia) Limited, an international trading company incorporated under the laws of Saint Lucia.
GCG Ground Services (St. Lucia) Limited is in turn owned by Infinite Holdings (St. Lucia) Limited, a company also incorporated in Saint Lucia in which GEL has a 51% interest.
The sole purpose of the incorporation was to resume the business of SAS when it (SAS) ceased operations at Grantley Adams International Airport.
The cessation took place in October 2019. GCG began operating at the airport in November 2019 under a temporary arrangement with SAS pending FTC approval. (BMI1)