The EU will approve the acquisition of Lufthansa’s 41% stake in ITA Airways

The EU antitrust authority is expected to approve Lufthansa’s acquisition of a 41% stake in ITA Airways, Italy’s national carrier. This expected approval follows Lufthansa’s submission of a new set of licenses in response to EU competition concerns.

Lufthansa’s efforts to take over a stake in ITA Airways have been ongoing since February 2022. The offer was met with intense scrutiny due to concerns about reducing competition on certain routes and ITA’s strong presence at Milan-Linate Airport. The airline stressed it would not make further concessions and set a deadline, indicating it could withdraw from the deal if it was not approved by July 4.

Read more: EU antitrust regulators warn Lufthansa’s offer for a stake in ITA Airways threatens competition

The final package of measures presented by Lufthansa is currently being considered by the regulator. The expected approval is a key step in the context of wider airline mergers in Europe, reflecting a continuing trend towards consolidation in the industry. This development coincides with the ongoing investigation into the proposed takeover of Air Europa by IAG Group.

The EU’s decision on the acquisition of ITA Airways by Lufthansa is expected to have a significant impact on the competitive landscape of European aviation, particularly in terms of market dynamics at key airports and on popular routes. As the industry continues to recover from the effects of the pandemic, this approval could signal further consolidations and strategic alliances aimed at strengthening the financial stability and operational efficiency of European airlines.

Source: Reuters