15th Jul 2015 09:28
LONDON (Alliance News) - International Consolidated Airlines Group cleared the final hurdle in its EUR1.4 billion takeover bid for Irish flag carrier Aer Lingus Group PLC late on Tuesday, after the European Union gave its approval to the takeover with a concession made on the number of Gatwick slots the combined business will have.
IAG, which owns British Airways and Iberia, said it has had to give up five slots at Gatwick airport for flights to Dublin and Belfast in order to secure European Commission approval. Two of the five must be operated between Gatwick and Dublin and one must be operated to Belfast, under the concessions. Other airlines will be able to apply for seats on the Aer Lingus short-haul network for their transfer passengers on normal commercial terms, IAG said.
European approval was the final obstacle stood in the way of IAG completing the deal for Aer Lingus, with the path having been made clearer last week when Ryanair Holdings PLC, the Irish low budget carrier, said its board had voted in favour of accepting IAG's offer for its 29.8% stake in Aer Lingus.
The Ryanair acceptance and the European approval bring to a close a takeover process which has been running since December 2014, when IAG first made its bid for Aer Lingus. The board of Aer Lingus has consistently backed the deal and the Irish government, which holds a 25% stake in the carrier, gave its backing in May.
Irish government approval had centred on the Aer Lingus brand being maintained by IAG and on its slots at Heathrow also remaining intact. IAG had already committed to both of those requests.
IAG shares were flat at 551.87 pence on Wednesday, while Aer Lingus shares were up 0.4% to EUR2.483.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
RYA.LInternational Airlines