Booking Holdings loses last chance bid to acquire ETraveli

The European General Court dismissed Booking Holdings' BKNG challenge to overturn the European Commission's block of its $1.9B acquisition of ETraveli. The regulator blocked the transaction in 2023 on its view the deal would have created a travel ecosystem for Booking BKNG, leaving rivals unable to compete.

The European Court agreed with the EC and rejected Booking's BKNG arguments that the Commission had not followed its merger rules and had applied an incorrect legal standard. "The Commission found, correctly, that the acquisition of Etraveli Group, Europe's leading online flight booking operator, would have strengthened Booking's already dominant position in the market for online travel agencies in the hotel sector," said the European General Court judges.

Booking Holdings BKNG agreed in November 2021 to acquire ETraveli Group from CVC Capital Partners and minority sellers. The strategic rationale was to broaden Booking's BKNG "connected trip" offering by pairing flights with accommodations and other travel services, improving cross-selling, and making Booking BKNG a more comprehensive travel platform.

Shares of Booking Holdings BKNG were down 1.9% in premarket trading after falling 6.7% on Tuesday.