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).
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.