Source: Iberia
Iberia’s parent IAG has informed Spain’s CNMV stock market commission that it has reached agreement with Air Europa’s parent Globalia to rescind the 4 November 2019 agreement, modified on 20 January 2012, whereby Iberia was to have acquired Air Europa.
It ultimately proved impossible to successfully close the deal which represented a strategic move for the future of Spain’s air connectivity, strengthening Iberia’s Madrid hub, developing quality tourism, and contributing to the recovery of the Spanish economy.
Since it is such a key operation for Spain and for both the airlines involved, Iberia remains committed to exploring alternatives involving equity structures in an attempt to salvage the deal.
Accordingly, IAG is to pay Globalia 35 million euros in addition to the 40 million already agreed, as an indication of its commitment to reach an agreement in a second negotiating stage, and also to settle any pending disputes arising from the failed acquisition deal.
Both parties have agreed that these sums are to be deducted from the sale price in the event that a future acquisition arrangement is reached.
To this end, and with a focus on business recovery, saving thousands of jobs, and ensuring the development of an industry that is vital to tourism in Spain, IAG and Globalia have signed an agreement of intent to assess possible alternatives and other structures that may be in the interest of both companies, and which can offer similar benefits to the shareholders, customers, and employees of each, before the end of January 2022.
Meanwhile, Iberia continues to work with the Spanish administration on finding ways to improve Spain’s air connectivity and to strengthen the competitiveness of the Madrid hub with respect to other European airports.