The EU will probably give the green light to Lufthansa’s takeover of ITA Airways, reports Bloomberg – AeroTime

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Approval by the European Commission of the proposed acquisition by the Lufthansa Group of shares in the capital of the Italian airline ITA Airways is expected by July 4, 2024, Bloomberg reports.

According to these reports, the final decision on the deal is currently being drafted by European competition officials and is expected to be greenlit after the German airline group introduced remedial measures to mitigate potential adverse effects on competition in some key markets.

EU approval is needed for Lufthansa to proceed with its plan to include the Italian carrier (which replaced Alitalia as Italy’s flag carrier) in its airline portfolio, which already includes SWISS, Austrian Airlines, Brussels Airlines Discover Airlines and Eurowings. .

Lufthansa Group acquired 41% of ITA Airways for 325 million euros ($349 million) in May 2023 and has signaled its intention to acquire the remaining 59% from the Italian state for an additional 500 million euros, subject to the achievement of certain performance indicators by 2026.

The move led to an investigation by the European Commission, which subsequently identified several areas of concern, such as a potential restriction of competition in key long-haul markets and a likely dominant position at Linate Airport (LIN) in Milan.

While the final terms set by the European Commission are not yet known, Lufthansa Group has reportedly proposed separating ITA Airways’ transatlantic operations for several years to allay the competition watchdog’s concerns.