Airline catering: joint venture between LSG and Gate Gourmet cleared

On the 20th July 2006, the European Commission cleared in Phase 1 a joint venture between LSG and Gate Gourmet, which will combine their respective airline food catering businesses in Paris Charles de Gaulle airport. Although the new entity and Servair would be the only two remaining major airline catering providers at Charles de Gaulle, the Commission concluded that the transaction would not significantly impede effective competition. In particular, unilateral and coordinated effects were ruled out due to the presence of recent new entrants, which will exert competitive pressure on the two market leaders, the bidding nature of competition and the non transparency of market conditions. RBB, working closely with WilmerHale and Ashurst, provided economic advice throughout the EU notification of the proposed transaction.