IAG agrees to purchase the remaining 80% of Air Europa for 400 million euros

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Air Europa Airbus A330-343 EC-MHL © Alan Wilson, on Wikimedia

International Airlines Group (IAG) has agreed with Globalia the acquisition of the remaining 80% of the share capital of Air Europa for 400 million euros. In this way, the airline group that owns Iberia and British Airways takes over 100% of the Hidalgo family airline for a total of 500 million euros.

IAG has explained that the first 200 million euros will be paid when approval is received from the Competition authorities, 100 million euros in IAG ordinary shares and 100 million euros in cash.The second and third year after the date of approval of the operation, another 100 million euros will be paid each year.

The deal is subject to regulatory and other approvals, which could take around 18 months.

IAG’s board of directors believes that the acquisition will enable the Group to benefit from growth opportunities in the Latin American and Caribbean market, as well as increased connectivity with Asia.

It also considers that it provides “significant” benefits for customers, by providing more networking opportunities and providing access to IAG’s Avios loyalty scheme, as well as offering significant synergies.

Upon completion of the transaction, the Air Europa brand will remain under the management of Iberia. 

The CEO of IAG, Luis Gallego, believes that this agreement will allow IAG’s Madrid hub to “compete on equal terms with other European hubs and consolidate its position as the main gateway between Europe and Latin America.”

 

 

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