IAG, the parent company of British Airways, Iberia, Aer Lingus and Vueling, will convert its loan to the owner of this airline, Globalia, into a 20% stake in Air Europa, according to a statement published on Tuesday.
The airline group “exercised its option to exchange the loan of 100 million euros” to Globalia for a 20% stake in Air Europa, the statement detailed.
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IAG had reported in March the granting of this loan to the Spanish group, as part of an initial merger project with Air Europa worth 1,000 million euros, announced in 2019.
The initial acquisition project ran into the pandemic, which led IAG to cut its initial offer in half, and the reluctance of the European Commission, concerned about a reduction in competition in the Spanish market.
Faced with these difficulties, IAG resigned in December from the 2019 acquisition agreement. The British group, however, announced that it wanted to find another formula to approach Air Europa.
→ IAG, owner of British Airways and Iberia, returns to profit.
The London-based group wants to strengthen its links with the American continent and make Madrid one of its main operations centers in Europe, AFP reported.
IAG is the third largest airline group in Europe behind Ryanair and Lufthansa.
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