British Airways owner scraps planned takeover of Air Europa
IAG said the £420 million takeover will now not happen.
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.The £420 million takeover of Air Europa by British Airways owner IAG has been scrapped, both sides have announced.
They said “discussions are at an advanced stage to terminate the agreement” and it comes just weeks after the UK’s competition watchdog said it would investigate whether it breached competition rules.
IAG first announced plans to buy the Spanish airline in 2019 for one billion euros (£840 million) although the price was slashed after the Covid-19 pandemic knocked the entire sector by grounding planes.
It has now been scrapped entirely.
Bosses had already offered concessions to EU antitrust bodies over the deal, although the details have not been made public.
A European Commission investigation was launched in June over concerns that the plans would reduce competition on Spanish domestic routes and international routes to and from the country.
IAG already owns Iberia and the deal would see it buying Air Europa on behalf of IAG, but trade unions and rival carriers had raised concerns.