UPDATE: IAG agrees to acquire Air Europa for a deferred, lower price tag of EUR500 million
International Airlines Group on Wednesday announced a cut-price deal for Air Europa worth EUR500 million ($607 million). Under terms of the deal, IAG-owned Iberia Airlines will acquire all shares of the rival airline from owner Globalia Corporacion Empresarial, but the amount to be paid has been reduced from EUR1 billion, and will be deferred until the sixth anniversary of the deal's completion. Revised deal terms are dependent on negotiations between Iberia and industrial holding company Sociedad Estatal de Participaciones Industriales regarding financial support it provided to Air Europa in 2020. The deal is expected to complete by the second half of 2021, but still subject to EU approval. IAG expects the purchase of the Spanish airline to "generate significant cost and revenue synergies," now expected by 2026, and be earnings accrective in the first full year after the deal is competed.
-Barbara Kollmeyer; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 20, 2021 02:56 ET (07:56 GMT)
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