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IAG to buy Air Europa for $1.11 billion in cash

Christian Fernsby |
International Consolidated Airlines Group ("IAG") and Globalia ("Globalia") announced that definitive transaction agreements have been signed under which IAG’s wholly owned subsidiary, IB OPCO Holding S.L. (“Iberia”), has agreed to acquire the entire issued share capital of Air Europa for €1 billion to be satisfied in cash at completion and subject to a closing accounts adjustment.

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Topics: IAG    AIR EUROPA   

ghlights

Transforms IAG’s Madrid hub into a true rival to Europe’s four largest hubs: Amsterdam, Frankfurt, London Heathrow and Paris Charles De Gaulle.

Re-establishes IAG as a leader in the highly attractive Europe to Latin America and Caribbean market.

Offers significant synergy potential in terms of cost and revenue.

EPS accretive in the first full year and accretive to IAG’s return on invested capital by the fourth year after Completion.

Completion is expected to take place in H2 2020 following receipt of relevant approvals.


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