BEIJING (Reuters) -China’s market regulator said on Tuesday it has approved ANA Holdings Inc’s acquisition of Nippon Cargo Airlines (NCA) with conditions, including a set of binding commitments to preserve fair competition in the China-Japan air cargo market.
The Chinese regulator’s approval has cleared the way for ANA, Japan’s largest airline, to buy NCA to bolster international cargo operations, after multiple delays.
In a statement, the State Administration for Market Regulation said ANA, NCA and their merged entity must continue to honor existing agreements for cargo ground handling at Tokyo Narita and Osaka Kansai airports.
The decision was made to ensure the smooth operation of bilateral trade and safeguard the stability of regional industrial and supply chains, the regulator said.
With the green light from the Chinese authority, ANA is set to acquire NCA from current parent Nippon Yusen KK, Japan’s largest shipping line, on August 1, it said.
ANA announced the plan to acquire NCA in 2023 but has postponed the execution eight times, most recently last Wednesday, citing delays in regulatory processes.
Japan Fair Trade Commission, the country’s market watchdog, had approved the takeover plan in January.
(Reporting by Ethan Wang and Liz Lee in Beijing; Additional reporting by Kantaro Komiya in Tokyo; Editing by Joe Bavier and David Evans)
