Qantas share price takes a dive amid more takeover delays

Qantas shares are having a difficult start to the week. Acquisition concerns appear to be behind this.

| More on:
airline pilot on the phone looking distraught, qantas share price

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Travel Shares

Bored woman waiting for her flight at the airport.
Travel Shares

Why is the Flight Centre share price falling today?

What's going on with this travel agent's shares?

Read more »

Man sitting in a plane seat works on his laptop.
Travel Shares

A 'once in a lifetime' opportunity for Qantas shares?

Can this stock fly higher?

Read more »

Two elderly men laugh together as they take a selfie with a mobile phone with a city scape in the background.
Travel Shares

Act fast if you want to receive the next Flight Centre dividend

It won't be long until this travel agent pays its next dividend.

Read more »

Man sitting in a plane looking through a window and working on a laptop.
Travel Shares

Why is the Webjet share price racing to a 52-week high today?

Webjet has been busy talking up its WebBeds business this morning.

Read more »

A businessman points a finger in accusation, indicating a share price or ASX company in trouble
Travel Shares

Qantas shares hit turbulence amid $250,000 fine for 'shameful' conduct

ASX 200 investors are bidding down the Qantas share price on Wednesday.

Read more »

A woman ponders a question as she puts money into a piggy bank with a model plane and suitcase nearby.
Travel Shares

Flight Centre shares plunge 7% despite return of the interim dividend

ASX 200 investors are sending the Flight Centre share price spiralling lower on Wednesday.

Read more »

Happy couple looking at a phone and waiting for their flight at an airport.
Earnings Results

Flight Centre share price on watch amid 565% half-year profit surge

Flight Centre shares could see some sizeable moves today after the ASX 200 travel stock reported on its half-year results.

Read more »

Two elderly men laugh together as they take a selfie with a mobile phone with a city scape in the background.
Travel Shares

Own Flight Centre shares? Here's what you need to know ahead of its results

The travel agent giant is releasing its results on Wednesday next week.

Read more »