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IAG, Globalia Amend Agreement For Acquisition Of Air Europa - Quick Facts

International Cons Airlines Group (IAG.L,BAIRY.PK,BAY.L) and Globalia have amended their original agreement under which IAG's unit, Iberia, has agreed to acquire the entire issued share capital of Air Europa. Under the amendment agreement, the amount to be paid by Iberia for Air Europa will be reduced from an equity value of 1 billion euros to 500 million euros with payment deferred until the sixth anniversary of the acquisition's completion.

IAG said, assuming satisfaction of all conditions, completion of the deal is expected to take place in the second half of 2021. The acquisition is anticipated to be earnings accretive in the first full year following completion. IAG said it will be taking on Air Europa at a time when air travel recovery could be meaningful.

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