EU nod for Lufthansa participation in ITA Airways

BTN News
Thursday, 04 July 2024
Lufthansa has received approval from Brussels to acquire an initial 41 per cent minority stake in Italy's Ita Airways.
The way is now clear for the initial acquisition -and the subsequent acquisition of the remaining shares - by Deutsche Lufthansa AG for a capital contribution of EUR325 million, as agreed in May 2023.
 
The investment will be completedthrough a capital increase. The transaction is expected to close in the fourth quarter of 2024. This requires both the prior implementation of the remedies negotiated with the EU Commission and the approval of other competition authorities outside the EU. Options for theacquisition of the remaining shares in Ita Airways have been agreed between Lufthansa Group and MEF and can be exercised from 2025 at the earliest.
 
Following the closing, Ita Airways is to become the fifth network airline to be integrated with Lufthansa Group while keeping its brand name (Ita Airways). As part of the multi-hub, multi-airline and multi-brand system successfully established by the Lufthansa Group, the Italian airline will utilise numerous synergies, for example in world-wide sales, the loyalty program Miles & More or also in aircraft and fuel purchasing.
 
Italy will become the Lufthansa Group's fifth "home market". It will also become the Lufthansa Group's second largest market in terms of revenue after Germany and the USA. Italy is already the second most important market for the company outside its home markets after the USA. 
 
In terms of gross domestic product, Italy is the third largest economy in Europe with a strongly export-oriented economy.

EU nod for Lufthansa participation in ITA Airways

BTN News
Thursday, 04 July 2024
Lufthansa has received approval from Brussels to acquire an initial 41 per cent minority stake in Italy's Ita Airways.
The way is now clear for the initial acquisition -and the subsequent acquisition of the remaining shares - by Deutsche Lufthansa AG for a capital contribution of EUR325 million, as agreed in May 2023.
 
The investment will be completedthrough a capital increase. The transaction is expected to close in the fourth quarter of 2024. This requires both the prior implementation of the remedies negotiated with the EU Commission and the approval of other competition authorities outside the EU. Options for theacquisition of the remaining shares in Ita Airways have been agreed between Lufthansa Group and MEF and can be exercised from 2025 at the earliest.
 
Following the closing, Ita Airways is to become the fifth network airline to be integrated with Lufthansa Group while keeping its brand name (Ita Airways). As part of the multi-hub, multi-airline and multi-brand system successfully established by the Lufthansa Group, the Italian airline will utilise numerous synergies, for example in world-wide sales, the loyalty program Miles & More or also in aircraft and fuel purchasing.
 
Italy will become the Lufthansa Group's fifth "home market". It will also become the Lufthansa Group's second largest market in terms of revenue after Germany and the USA. Italy is already the second most important market for the company outside its home markets after the USA. 
 
In terms of gross domestic product, Italy is the third largest economy in Europe with a strongly export-oriented economy.