International Airlines Group announced to the Comisión Nacional del Mercado de Valores the decision to rescind the agreement with Globalia that had been signed on November 4, 2019 (and amended on January 20, 2021) for the acquisition of Air Europa by Iberia, in order to avoid a possible draining and almost impossible process of approval to comply with by the regulatory authorities of the European Union.
But this does not mean the end of the operation, but rather opens the window for them to explore new business alternatives and different operational and corporate structures, which, they said, should be evaluated before the end of January 2022.
«It is very disappointing that we have had to terminate the current agreement to acquire Air Europa but the decision makes sense given current market conditions, the profound crisis resulting from COVID-19, and given our desire to maintain a disciplined approach to capital allocation. Nevertheless, we are committed to exploring new alternatives with Globalia that could generate significant benefits. We will also continue to engage with the Spanish government to ensure Spain’s connectivity and the development of the Madrid hub,» said Luis Gallego, CEO of IAG.
The termination of this contract will mean for IAG the payment of an extra 35 million euros in addition to the 40 million euros previously agreed as a break fee. These 75 million euros will be deducted from any future purchase price in case a new agreement is reached.
