15th Dec 2021 09:07
(Alliance News) - International Consolidated Airlines Group SA is on the verge of scrapping a planned EUR500 million takeover of Spanish airline Air Europa, the FTSE 100 listing said on Wednesday, weeks after a UK watchdog opened a probe on the deal.
The airline group, which owns British Airways, Iberia and Aer Lingus, said it is at an "advanced stage" of talks to terminate the agreement.
IAG said a "further update will be made in the future".
Air Europa is a Spanish airline which operates domestic and international flights in Europe, as well as long-haul routes to Latin America, the US, the Caribbean and North Africa. It is owned by Globalia.
IAG first announced plans for its Iberia arm to buy the carrier in 2019 for EUR1 billion although the price was slashed after the Covid-19 pandemic knocked the entire sector by grounding planes.
In November, the UK Competition & Markets Authority said it began a probe into the deal.
The CMA said it was considering whether the purchase of Air Europa will reduce competition in the UK, and it invited comments on the matter. It set a deadline of January 19 for a decision.
IAG shares were 1.5% lower at 130.64 pence each in London on Wednesday morning.
By Eric Cunha; [email protected]
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