Thai AirAsia says it will not buy shares in Nok Air

Asia Aviation, majority shareholder of budget airline Thai AirAsia, said on Wednesday that it would not proceed with an acquisition of shares in rival carrier Nok Airlines, sending Nok’s shares down.

Nok’s shares fell more than 12% and Asia Aviation’s prices slid nearly 3% in the morning trading session.

Asia Aviation said in February that it was in talks to buy Nok shares, although Nok had said at the time that it was “not aware of any details in this respect”.

Nok is 53% owned by the Jurangkool family, which also controls Thai Steel Cable PCL and unlisted auto parts maker Thai Summit.

Intense competition among budget airlines has led to quarterly losses since 2015 for Nok.

Asia Aviation owns 55% of Thai AirAsia, with the remainder held by Malaysia’s AirAsia Group Bhd.