[Update] Lufthansa completes sale of catering subsidiary LSG’s European operations to GateGroup

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In addition to the European catering businesses, the purchase agreement also covers the lounge and train bus

iness and the retail convenience food brand Evertaste and its European facilities, the equipment business SPIRIANT and the retail stores of the “Ringeltaube” brand.

gategroup is a long-term partner for catering and services in Frankfurt, Munich and Zurich. Lufthansa will retain a minority stake in the Frankfurt and Munich catering facilities, which provide in-flight service for Lufthansa flights. This ensures a seamless transition of the catering business and a successful start of the cooperation. gategroup will introduce a new Lufthansa-dedicated Studio 50/8TM*, a culinary think tank and exclusive house of inspiration and co-creation which will set a new airline catering industry standard.

Carsten Spohr, CEO of Deutsche Lufthansa AG, said: “With the sale of LSG’s European business to gategroup, we are setting another milestone in the restructuring of the Lufthansa Group. We are focusing more strongly on our core airline business, we are becoming leaner, more efficient and reducing the Group’s internal complexity. My sincere thanks go to the 7,500 employees who are now joining gategroup. They have led our catering business in Europe to success in recent years and will continue to indulge Lufthansa guests with premium catering under the leadership of gategroup.”

Lufthansa Group continues to aim to sell the remaining international part of LSG Group as soon as the general conditions allow.

UPDATE

European Commission modifies and partially waives commitments made by Gategroup to obtain clearance of its acquisition of LSG European Business

The European Commission has modified and partially waived under the EU Merger Regulation the commitments made by Gategroup to obtain clearance of its acquisition of Lufthansa’s LSG European in-flight catering business. The Commission approved the transaction, subject to conditions, in April 2020.

The modification and partial waiver concern certain in-flight catering contracts with airlines at German airports (the ‘German divestment business’), as well as assets, that Gategroup committed to divest under the commitments. Upon receipt of the waiver request from Gategroup, the Commission has assessed the changed market conditions.

The Commission’s assessment revealed that the structure of the relevant markets for in-flight catering in Germany has changed in a way that was not reasonably foreseeable at the time of the adoption of the decision approving the transaction. The Commission also considers that with the requested changes to the commitments relating to the German divestment business, the competition concerns outlined in the clearance decision no longer arise and are no longer likely to arise. On this basis, the Commission has decided to approve Gategroup’s waiver request.

More information is available on the Commission’s competition website, in the public case register under the case number M.9546.

29 October 2021

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