International Airlines Group (IAG) has terminated its acquisition contract with Air Europa.
The contract was signed on February 23, 2023, with plans to acquire 80% of the issued shares from Globalia, making it a wholly-owned subsidiary. IAG had previously acquired 20% of Air Europa’s issued shares on August 16, 2022.
With the termination of the contract, IAG will pay a penalty of 50 million euros to Globalia. The IAG board has concluded that continuing the transaction under the current regulatory environment would not serve the best interests of the shareholders.
IAG’s CEO, Luis Gallego, stated, “We believe that this decision is in the best interests of our shareholders. IAG will continue to dedicate its efforts to its strategy, including effectively competing with Madrid as a hub. This strategy has been yielding favorable results. We will continue to enhance our presence in Madrid to ensure the city’s hub airport can develop into a rival of Europe’s largest hub airports.”
Established in January 2011, IAG is a holding company that owns British Airways, Iberia, Vueling Airlines, Aer Lingus, and LEVEL.
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