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EU: IAG announced a €1B euro takeover of Spain’s Air Europa

 |  November 4, 2019

IAG, the parent of British Airways and Spain’s Iberia, announced a €1 billion (US$1.12 billion) takeover of Spain’s Air Europa to boost its presence on routes to Latin America and the Caribbean.

The deal follows a setback in Latin America for IAG after Chile’s Supreme Court ruled against a plan that would have allowed it to bolster cooperation with partners in the Oneworld airline alliance.

Chile’s LATAM Airlines in September then announced it planned to leave the alliance, opting instead for a tie-up with SkyTeam member Delta Air Lines.

Ryanair CEO Michael O’Leary said his company will ask the UK’s market watchdog to force IAG to make divestments as part of its Air Europa takeover, a deal he said would be bad for competition. 

“Potential remedies, perhaps in the form of slot release or behavioral restrictions, may be required and these could impact the potential synergies,” an analyst at Liberum wrote in a note.

Full Content: Reuters

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