IBERIA AIRLINES has pulled out of deal to take over Air Europa due to the current uncertainty surrounding tourism and the pandemic.
IAG, parent company of Iberia Airlines has confirmed via the Spanish CNMV (National Securities Market Commission) that it is suspending talks with Globalia over the purchase of Air Europa although it hopes to renegotiate some form of deal during 2022.
This decision to enter into an agreement to purchase was announced in November 2019 and modified in January 2021 and IAG has made a second payment of €35 million (in addition to the agreed €40 million) as a sign of commitment and to eliminate any pending claims.
In the event that a sale does take place, then the entire €75 million will be offset against the final purchase price.
IAG explained in a press release via Iberia that the decision was made due to the problems caused by the pandemic and the ongoing fragility of the tourist market to and from Spain as well as the current state of the Spanish economy.
As it is a key operation for the country and very important for both companies, Iberia has committed to exploring different alternatives for shareholder structures to try to come to some form of agreement to obtain the operation of Air Europa.
A new letter of intent has been signed by both parties to evaluate alternatives and other structures that may be interesting for both companies, offering similar benefits for their shareholders, customers and employees, before the end of January 2022.
In parallel, Iberia intends to work with the Government of Spain to continue improving the country’s connectivity and to strengthen the Madrid hub to make it competitive with other European airports.
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