The IAG group, of which Iberia is a part, will buy the 80% stake in Air Europa that it lacked, for 400 million euroswhich closes an operation that had been open for more than three years and which has among its objectives the market in America, This was reported by the Spanish airline this Thursday.
The agreement provides for the acquisition by IAG of the remaining 80% of Air Europa for 400 million euros, said Globalia, the parent company of Air Europa, which also specified that the total amount of the operation amounts to 500 million euro.
International Air Group Consolidated Airlines (IAG), which they belong Iberia and British Airwaysamong others, he paid 100 million for 20% of Air Europa just over three years ago.
Of the 400 million euros, the first 200 million will be paid when approval from competition authorities is received, including 100 in IAG ordinary shares and another 100 in cash, according to the group.
A further 100 million euros each will be disbursed in the second and third years of the approval of the transaction.
The deal is subject to regulatory and other approvals, which could take about a year and a half, according to a statement from IAG.
In 2022, IAG converted a seven-year €100 million unsecured loan to Globalia into a 20% stake in Air Europa’s capital.
The acquisition “positions the group to benefit from the growth opportunities in the Latin American and Caribbean market”, highlighted IAG, which described the American market as “very attractive.”
IAG CEO Luis Gallego stressed that “Madrid is the main gateway between Latin America and in Europe and there are opportunities to expand your network.
For its part, Globalia underlined that “the project will consolidate the air connectivity offer between Europe and America, especially with Latin America and the Caribbean region, where Air Europa has an extensive network of destinations and a solid presence and recognition, in turn establishing a solid link from the Americas to Asia and the Middle East”.
“This will allow Spain to compete on an equal footing with other European hubs and will contribute not only to accelerating economic development on both sides of the Atlantic, but also to the recovery of the tourism industry with the implementation of a new model, more innovative, sustainable and profitable,” he added in a statement.
The merger concerns flights connecting Madrid with the United States or Latin America, since Iberia and Air Europa compete in the Latin American market and, before the pandemic, overlapped in many destinations such as the Dominican Republic, Cuba, Panama, Asunción, Bogotá, Buenos Aires, Miami or New York. EFE extension
Source: Clarin
