Lufthansa has agreed to buy a 40% stake in ITA Airways, as per an agreement with the Italian government.
An official agreement is set to be made on May 25, 2023, as reported by the Italian daily Corriere della Sera. The German airline group plans to invest between €320 million ($345.2 million) and €330 million ($356 million) for a 40% stake, which could potentially increase to at least 90% in the future.
If ITA Airways achieves a break-even point during the first half of 2026, Lufthansa may initiate the acquisition process for the remaining shares of the Italian carrier at a cost of approximately €500 million ($539.3 million).
Read more: EU Court Backs Ryanair Challenge To Lufthansa State Aid
The approval of the deal would depend on the European Commission (EC), as they are already informed about the potential deal and would require remedial measures to address competition concerns.
The merger between Korean Air and Asiana Airlines was denied by the EC on May 17, 2023 due to concerns about competition on routes between Europe and South Korea.
Featured News
FTC Urged to Enforce Rarely Used Antitrust Law Against Retail Giants
Mar 28, 2024 by
CPI
UK’s Fingleton Bolsters Team with New Additions
Mar 28, 2024 by
CPI
Britain’s Competition Regulator Clears Aviva’s Acquisition of AIG Life UK
Mar 28, 2024 by
CPI
White House Implements New AI Safeguards to Protect Rights and Safety
Mar 28, 2024 by
CPI
Denver Court Sets August Date for Kroger-Albertsons Merger Showdown
Mar 28, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Real Estate & Antitrust
Mar 27, 2024 by
CPI
Systematic National Evidence of Steering by Real Estate Agents
Mar 27, 2024 by
CPI
Compliance Now! Actionable Antitrust Advice for the Residential Real Estate Industry
Mar 27, 2024 by
CPI
Real Estate Commissions: Some Insights from the Economics of Multi-Sided Platforms
Mar 27, 2024 by
CPI
New Ideas for Promoting Real Estate Brokerage Price Competition
Mar 27, 2024 by
CPI