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The IAG Group through Iberia buys Air Europa For one billion euros, which would make them the main operator between Europe and Latin America and the Caribbean.
El grupo International Consolidated Airlines Group (“IAG”) and Globalia announce that they have signed the definitive agreements under which the IAG subsidiary, Iberia has agreed to acquire the entire issued share capital of Air Europa for one billion euros, which will be paid in cash at the Closing of the acquisition process..
With a process that must go through the respective free competition and market courts of Spain and the European Union, seeks to form, although maintaining independent brands, the most important airline group that connects Europe with Latin America given the growth of other groups such as Air France – KLM.
With this agreement, the IAG group hub that operates in Madrid will become one of the most important European hubs and will compete with Amsterdam., Frankfurt, London and Paris.
Too, It seeks to offer significant potential improvements in terms of operating costs and income from the activity for each of the airlines involved., also generating an increase in earnings per share in terms of profitability on the capital invested by IAG..
Finally, The closing of this agreement is expected to take place in the second half of the year 2020 Once the relevant authorizations are achieved by the corresponding authorities.
In statements made by Willie Walsh, CEO of IAG, this indicated:
“The acquisition of Air Europa means adding a new competitive and profitable airline to IAG, making Madrid a leading European hub and allowing IAG to achieve leadership in the South Atlantic, thus generating additional financial value for our shareholders.
IAG has a strong track record of successful acquisitions, the most recent with the acquisition of Aer Lingus in 2015, and we are convinced that Air Europa represents a great strategic fit for the group”.
On the side of Glovalia, which represents Air Europa, Javier Hidalgo indicated:
We are convinced that it will be a success for Air Europa to join a Group like IAG, which has demonstrated throughout all these years its commitment to the development of the airlines that comprise it and to the Madrid hub”.
The Air Europa brand will be retained initially and the company will remain an autonomous revenue center within Iberia led by the CEO of Iberia, Luis Gallego.
To close, IAG indicated that it has agreed to pay a break fee from 40 Millions of euros in the event that the relevant regulatory authorizations are not obtained and that any of the parties decides to resolve the agreement.
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