😎 Summer Sale Exclusive - Up to 50% off AI-powered stock picks by InvestingProCLAIM SALE

Lufthansa offers concessions to gain EU nod on ITA takeover

Published 04/15/2024, 05:01 AM
Updated 04/15/2024, 05:16 PM
© Reuters. FILE PHOTO: An Italian carrier Italia Trasporto Aereo (ITA Airways) plane is checked by workers at Fiumicino airport in Rome, Italy, January 31, 2023. REUTERS/Remo Casilli/File Photo
LHAG
-

By Foo Yun Chee

BRUSSELS (Reuters) - German airline Lufthansa has offered concessions aimed at securing EU antitrust approval for its acquisition of a minority stake in Italian carrier ITA Airways, an update on the European Commission website shows.

The EU executive did not provide details of the remedies, in line with its policy, and is expected to seek feedback from rivals and customers before clearing the deal or making further demands.

Lufthansa's remedies could include ceding airport slots, traffic rights and planes to a rival, similar to those in a Korean airline deal approved by the Commission, a person with direct knowledge of the deal has told Reuters.

The EU antitrust watchdog has said the deal threatened competition on short-haul routes between Italy and Central European countries, as well as on long-haul routes between Italy and the United States, Canada and Japan.

It would also strengthen ITA's dominant position at Milan's main airport.

Lufthansa's plan to buy a 41% stake in state-owned ITA for 325 million euros ($346.3 million) and British Airways owner IAG's bid to buy out Spain's Air Europa are part of sector consolidation as European carriers seek to compete better against U.S. and Gulf rivals.

Lufthansa is expected to attend a closed-door hearing in front of senior Commission officials and national competition officials on Friday, a person with direct knowledge of the matter said.

© Reuters. FILE PHOTO: An Italian carrier Italia Trasporto Aereo (ITA Airways) plane is checked by workers at Fiumicino airport in Rome, Italy, January 31, 2023. REUTERS/Remo Casilli/File Photo

The Commission is due to decide on the deal by June 6

($1 = 0.9384 euros)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.