OSLO (Reuters) - Norway's competition watchdog has extended its review of Norwegian Air's bid for domestic rival Wideroe by two months, it said on Friday.
"There may be reason to fear that the acquisition is negative for Norwegian air passengers," said Katrine Amdam, project manager at the authority.
Norwegian Air expects a positive outcome from the review, Chief Executive Geir Karlsen said in a statement.
The authority now has until Nov. 17 to present its preliminary view on whether the deal is likely to impede effective competition, with a final deadline of Jan. 3.
The deal announced on July 6 is valued at $1.13 billion Norwegian crowns ($105 million) subject to final adjustments and Norwegian has said it hopes to close the transaction by the end of the year.
The two airlines together operate 107 routes in Norway, five of which overlap, Norwegian has said.
($1 = 10.7055 Norwegian crowns)