Ryanair asks EU to clear its bid for Aer Lingus

Ryanair could learn within five weeks whether the European Commission will approve or block its bid to buy Aer Lingus.

The airline yesterday formally asked the commission for permission to go ahead with its €2.80 a share takeover bid for Aer Lingus.

The move means that the European Commission could rule on the bid by December 6th.

If it gives the go-ahead, it will mean that Ryanair will have cleared a key regulatory hurdle in its battle for control of the former national airline.

If the commission blocks the bid, it will mean that Ryanair cannot take over Aer Lingus.

At the end of the 35-day period, the European body has the option of carrying out a more in-depth investigation.

If it does this, it will have to complete that process in three months.

Such a move could postpone any decision to March. However, the European Commission only carries out these investigations in around 10 per cent of cases.

News that Ryanair had asked for permission to buy Aer Lingus emerged from Brussels last night.

The move also ends speculation that the Irish Competition Authority would have to rule on whether or not the proposed takeover could go ahead.

The fact that the commission is to rule on the bid means that the potential consequences of a successful takeover will be looked at in an EU-wide context rather than a purely Irish one.

The European body will block the bid if it decides that it would significantly impede effective competition.

Ryanair launched its audacious €1.48 billion attempt to take control of its long-standing rival at the beginning of the month, shortly after Aer Lingus made its debut on the Irish Stock Exchange.

It published its formal offer document last week.

Ryanair now owns more than 19 per cent of the airline. The Government owns one-quarter of Aer Lingus and has said that it is not going to sell.

Aer Lingus workers own 12.58 per cent of the company through their employee share ownership trust.

Its pilots own 2 per cent and businessman Denis O'Brien has 2.1 per cent, and says he is opposed to Ryanair's bid as it poses a threat to competition in the Irish aviation industry.