IAG abandons €500m Air Europa acquisition due to European Commission regulatory concerns.
IAG, parent company of British Airways and Spain's Iberia, has abandoned its €500m bid to acquire Spain's Air Europa due to regulatory concerns from the European Commission, who cited potential reductions in competition on various routes. The transaction had been on hold since last year, when the EC launched an "in-depth investigation" into the proposed deal. Despite the failed acquisition, IAG remains committed to its strategy of competing effectively from its Madrid hub and announced a 3.9% increase in first-half operating profit. IAG will pay Globalia, Air Europa's owner, €50m to cancel the deal and continue to hold a 20% stake in the airline.
August 01, 2024
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