What happened to the Qantas share price today?

The ACCC released its outcome for its three-year long investigation…

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Key points

  • Qantas shares edge 0.19% higher to finish out Tuesday's trading session at $5.17 
  • The ACCC advised it will take no action at this time regarding Qantas' 19.9% acquisition of Alliance Aviation 
  • Concerns were originally raised about the flying kangaroo's growing monopoly in the domestic travel market 

The Qantas Airways Limited (ASX: QAN) share price edged higher following an update from the Australian Competition & Commission (ACCC).

At Tuesday’s market close, Qantas shares ended the day up 0.19% to $5.17.

Let’s take a closer look at what was released to the ASX today.

ACCC proposes not to take enforcement action over Qantas acquisition

Before market open, Brisbane-based airliner, Alliance Aviation Services Ltd (ASX: AQZ) released a statement from the ACCC regarding Qantas’ 19.9% acquisition of the company.

Alliance advised that the ACCC wrote a letter stating that it will not take any further enforcement action in relation to the takeover.

Qantas secured the minority stake in Alliance during 2020 for roughly US$45 million.

At the time, alarm bells rang as the competition watchdog signalled its concerns about Qantas’ monopoly in the domestic travel market.

While no action has been taken since the investigation began 3 years ago, this could change.

The ACCC said that it will continue to monitor Qantas’s conduct in the industry regarding the acquisition, and action could happen at a later date.

Nonetheless, the news appears to not have bothered investors, with the Qantas share price travelling slightly higher.

On the other hand, the Alliance Aviation share price lifted 1.87% to $3.82 apiece.

Qantas share price snapshot

Since the start of 2022, Qantas shares have travelled on a rollercoaster, posting a gain of around 3%.

However, when looking at a larger time frame such as the last 12 months, its shares are relatively flat.

Qantas commands a market capitalisation of roughly $9.74 billion, making it the 60th largest company on the ASX.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Alliance Aviation Services Ltd. The Motley Fool Australia owns and has recommended Alliance Aviation Services Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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