International Airlines Group (IAG) has told shareholders its Iberia subsidiary will not pursue the planned acquisition of Spanish carrier Air Europa from Globalia.
IAG, which also owns Spanish airline Vueling, announced its intention to buy Air Europa in 2019, and at the time agreed to a sale price of 1 billion euros.
The deal was renegotiated in January 2021, with the price reduced to 500 million euros in the face of financial hardships in the airline industry caused by the Covid-19 pandemic.
The group had hoped the acquisition would allow it to turn Madrid into a global aviation hub to rival Amsterdam, Frankfurt, Heathrow and Paris Charles de Gaulle, as well as cement the company's position as a leader in the South Atlantic market.
However, the European Commission announced in June this year that it would investigate the deal over concerns it would reduce competition on Spanish domestic and international routes.
Then in November, the U.K.'s Competition and Markets Authority opened its own investigation over whether the acquisition would impact competition in the U.K.
While no reason was given for the end of the agreement, IAG said a further update would be made in the future "as appropriate."
Source: Business Travel News