IAG agrees to accumulate Air Europa for a deferred, lower cost tag of €500 million

Worldwide Airways Group on Wednesday introduced a cut-price deal for Air Europa value €500 million ($607 million). Beneath phrases of the deal, IAG-owned Iberia Airways will purchase all shares of the rival airline from proprietor Globalia Corporacion Empresarial, however the quantity to be paid has been lowered from €1 billion, and will likely be deferred till the sixth anniversary of the deal’s completion. Revised deal phrases are depending on negotiations between Iberia and industrial holding firm Sociedad Estatal de Participaciones Industriales relating to monetary help it offered to Air Europa in 2020. The deal is anticipated to finish by the second half of 2021, however nonetheless topic to EU approval. IAG expects the acquisition of the Spanish airline to “generate important price and income synergies,” now anticipated by 2026, and be earnings accrective within the first full 12 months after the deal is competed.

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