British Airways and Iberia owner IAG has agreed to buy Spain’s Air Europa for 500 million euros ($613 million) with payment deferred until 2026, reported Reuters.
IAG, its Spanish unit Iberia and Air Europa owner Globalia declined to comment on Friday on the El Confidencial report, which cited unnamed sources saying that the deal was on Thursday at half the original offer price.
After originally agreeing to buy Air Europa for 1 billion euros in November 2019, IAG has been pushing to cut the price as the coronavirus pandemic threw the airline industry into crisis.
International travel restrictions have brought the global transport sector to a grinding halt, pushing several airlines to rely on state aid.
For the sale to proceed, the Spanish government must waive its right to appoint two directors to Air Europa’s board, one of the conditions of a 475 million euro state aid package approved last month.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Uruguayan Antitrust Scrutiny Puts Major Meatpacking Deal Between Marfrig and Minerva on Hold
May 19, 2024 by
CPI
Alaska Airlines Seeks Dismissal of Consumer Lawsuit Over $1.9 Billion Hawaiian Airlines Buy
May 19, 2024 by
CPI
Idaho Attorney General Orders Split of Kootenai Health and Syringa Hospital
May 19, 2024 by
CPI
Court Rejects T-Mobile’s Appeal Bid in Antitrust Case Over Sprint Merger
May 19, 2024 by
CPI
Google Requests Judge, Not Jury, to Decide on Antitrust Case
May 19, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Ecosystems
May 9, 2024 by
CPI
Mapping Antitrust onto Digital Ecosystems
May 9, 2024 by
CPI
Ecosystems and Competition Law: A Law and Political Economy Approach
May 9, 2024 by
CPI
Ecosystem Theories of Harm: What is Beyond the Buzzword?
May 9, 2024 by
CPI
Open Ecosystems: Benefits, Challenges, and Implications for Antitrust
May 9, 2024 by
CPI