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EC Caves on Boeing Merger - fixed exclusive contracts
EU clears Boeing's merger
Preliminary OK granted to $15-billion
merger with McDonnell Douglas
I guess the all out effort by the Clinton Administration worked.
July 23, 1997: 7:08 a.m. ET
NEW YORK (CNNfn) - The European Commission has approved "in principle"
conditions for Boeing Co. to go ahead with its planned
$15-billion-merger with McDonnell Douglas Corp.
A formal decision is expected to come as early as next week. The U.S.
government already cleared the deal.
The preliminary green light comes after an eleventh-hour offer by Boeing
to scrap exclusive supply agreements it has with three of the nation's
largest carriers: AMR Corp.'s American Airlines, Continental Airlines
and Delta Air Lines Inc.
Of primary concern for the EC, the regulatory arm of the European Union,
was the merger's competitive impact on Airbus Industrie -- the
consortium formed by Daimler-Benz of Germany, Aerospatiale of France,
British Aerospace and Spain's CASA.
"The remedies the commission was striving for have largely been
supplied," said EC antitrust chief Karel van Miert.
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