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IAG And Globalia Agree To Terminate Air Europa Acquisition Deal - Quick Facts

International Airlines Group (IAG.L,BAIRY.PK,BAY.L) and Globalia announced Thursday that they have terminated the agreement signed on November 4, 2019 and amended on January 20, 2021, under which IAG's subsidiary, Iberia, had agreed to acquire the entire issued share capital of Air Europa.

IAG has also reached an understanding with Globalia to evaluate, before the end of January 2022, alternative structures that may be of interest to both companies and offer significant benefits for their shareholders, customers and employees.

In addition to the previously agreed break-fee of 40 million euros, IAG will pay Globalia 35 million euros. Both parties have agreed that these amounts will be applied to reduce any future purchase price if a new agreement is reached and to avoid any litigation relating to the acquisition.

IAG's unit, Iberia, had agreed to acquire the entire issued share capital of Air Europa for 1 billion euros in November 2019. The companies then amended their agreement in January, 2021, under which they agreed that the amount to be paid by Iberia for Air Europa will be reduced to 500 million euros.

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