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.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Shares of Deutsche Post DHL Group were gaining around 6 percent in the morning trading in Germany after the package delivery and logistic major reported Friday higher profit and revenues in its second quarter with strong demand. Going ahead, the company confirmed its 2022 EBIT guidance of 8.0 billion euros, plus or minus 5 percent, even in consideration of a possible global economic downturn. Chinese e-commerce giant Alibaba Group Holdings Ltd. (BABA) reported Thursday net income for the first quarter halved from last year, hurt by a 1 decline in revenues and a decrease in the market prices of its equity investments in publicly-traded companies. Shares of Deutsche Lufthansa AG were gaining around 6 percent in the morning trading after the German flag carrier reported Thursday a profit in its second quarter, compared to last year's loss, benefited by surge in demand. The company also specified its outlook for the year, and now expects adjusted EBIT to be above 500 million euros for the full year of 2022, in line with current market.
Follow RTT