Britain’s competition watchdog on Monday started an investigation into United States travel technology supplier Sabre Corp’s < SABR.O > $360 million acquisition of smaller competitor Farelogix Inc, claiming that the agreement could increase the prices of airline and travel agent platforms to sell tickets.
The inquiry by the United Kingdom Competition and Markets Authority follows an original evaluation of the agreement by the regulator last month and arrives two weeks after the US Department of Justice sought to block the merger, increasing pressure on businesses to cancel the merger.
Sabre and Farelogix provide information technology systems that enable travel agencies to book hotels and airlines.
“We discovered that the suggested acquisition of Farelogix by Sabre could lead to greater prices for IT systems used by airlines & travel agents …, “said the rivalry watchdog of the United Kingdom, saying that it had referred the agreement “for a thorough inquiry.”
Sabre, who intended to close the merger by 21 August last month, expanded the acquisition agreement’s termination date to 30th April to allow time to resolve any problems.
Sabre said on Monday that it observed the CMA’s actions and the firm worked “constructively” with the power to prove the advantages of the agreement for airlines, travel agents and customers.
It was stated by Sabre “The agreement will speed up access to retail, distribution and services of the next generation that the industry requires.”
Southlake, Texas, reported earnings of $3.9 billion (3.18 billion pounds) in 2018, while Farelogix, located in Miami, reported income of $42 million last year.
Sabre Corporation is one of the world’s top tech provider to the global traveling industry.
Sabre’s data, software, mobile, as well as, distribution solutions are being utilized by masses of hotel properties and airlines to manage and control evaluative operations.