British Airways and Iberia owner IAG has agreed to buy Spain’s Air Europa for 500 million euros ($613 million) with payment deferred until 2026, reported Reuters.
IAG, its Spanish unit Iberia and Air Europa owner Globalia declined to comment on Friday on the El Confidencial report, which cited unnamed sources saying that the deal was on Thursday at half the original offer price.
After originally agreeing to buy Air Europa for 1 billion euros in November 2019, IAG has been pushing to cut the price as the coronavirus pandemic threw the airline industry into crisis.
International travel restrictions have brought the global transport sector to a grinding halt, pushing several airlines to rely on state aid.
For the sale to proceed, the Spanish government must waive its right to appoint two directors to Air Europa’s board, one of the conditions of a 475 million euro state aid package approved last month.
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