Lufthansa’s acquisition of a 41% stake in ITA Airways, Italy’s national airline and Alitalia’s successor, faces a potential collapse due to disagreements over the purchase price. Lufthansa reportedly requested a €10 million reduction from the €325 million initially agreed upon, citing a decline in ITA’s valuation expected in Q4 2024. The Italian government has resisted the discount, with an official emphasising that “Italy is not selling off its airline.“
The transaction, initially agreed upon in May 2023, aims to provide Lufthansa with a strategic foothold in Italy, the EU’s third-largest aviation market, while offering ITA Airways a stable partner. Both companies had reached a provisional agreement with the European Commission in July, which requires adjustments to certain routes to maintain market competition. The final document submission deadline was November 4, but ongoing pricing disputes could jeopardise the deal.
Despite the turbulence, Lufthansa affirmed its commitment to the original terms agreed with Italy’s Ministry of Economy and Finance. In recent financial developments, ITA Airways reported positive EBITDA of €62 million in H1 2024, a significant turnaround from a €68 million loss in the same period the previous year.
This post was published on 6 November 2024 23:15
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