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Sources suggest that Lufthansa is on track to secure approval from the European Union for its acquisition of ITA. This development underscores optimism surrounding the deal, potentially marking a significant milestone for both Lufthansa and ITA. Regulatory clearance from the EU would pave the way for Lufthansa to proceed with its strategic plans, aligning with expectations outlined by informed sources familiar with the ongoing negotiations.
Boston Brand Media brings you the latest news - Lufthansa (LHAG.DE) is expected to receive approval from EU antitrust authorities for its attempt to acquire a stake in Italy's state-owned airline ITA, according to three individuals familiar with the situation. The European Commission, responsible for enforcing EU competition rules, has not yet reached a definitive verdict, these sources noted. Lufthansa aims to purchase a 41% share of ITA, the successor to Alitalia, as part of its strategy to strengthen its position in the Italian and southern Mediterranean markets.
Boston Brand Media also found that approval from the EU would represent a significant victory for Italy, which has invested heavily in Alitalia despite its financial struggles over the years. The European Commission, with a decision deadline set for July 4, received no comments from Lufthansa or the Italian treasury. According to one source, Lufthansa continues to refine its solutions to address any remaining concerns of the EU antitrust watchdog. As part of its strategy, Lufthansa has committed to keeping ITA separate from its joint ventures with United Airlines (UAL.O) and Air Canada (AC.TO) for a period of two years to alleviate EU competition worries.
Lufthansa has additionally proposed retaining certain competitive ITA short-haul routes servicing Germany, Belgium, Switzerland, and Austria. They have also pledged to allocate 40 slots at Milan Linate airport to easyJet (EZJ.L) and Volotea, as part of their efforts to address competition concerns.
For questions or comments write to writers@bostonbrandmedia.com
Source: Reuters
