The Qantas Airways Limited (ASX: QAN) share price is descending on Monday morning.
At the time of writing, shares in the airline operator are down 3% to $6.27.
Why is the Qantas share price falling?
Today's weakness in the Qantas share price appears to have been driven by concerns over its proposed acquisition of Alliance Aviation Services Ltd (ASX: AQZ).
Alliance is Australasia's leading provider of contract, charter, and allied aviation and maintenance services. It provides essential services to mining, energy, and government sectors, as well as wet lease services for other airlines.
In May last year, Qantas announced an agreement with Alliance to acquire the remaining 80% stake that it does not already own in an all-scrip deal. At the time, the Qantas share price was trading at $4.75 per share, which valued the 80% stake at $614 million.
Qantas CEO Alan Joyce believed that "acquiring the remaining shares in Alliance would mean QantasLink can better compete in the highly competitive charter segment, particularly given the shared fleet type of Fokker aircraft."
What's the latest?
This morning, Alliance revealed that the Australian Competition & Consumer Commission (ACCC) had informed it that it would further delay its review of the proposed scheme of arrangement until 20 April 2023.
The market appears to believe that this could be a sign that the ACCC has concerns with the potential acquisition, casting doubts over the deal.
Given that Qantas expects it to be earnings per share accretive, it would be a blow if it didn't go through. But certainly not the end of the world for the airline operator.
Investors will have to sit tight and wait to see what the ACCC announces this time next month.
