British Airways owner International Airlines Group is too complete the takeover of Spanish carrier Air Europa.
IAG is to pay €400 million for the remaining 80% of the specialist carrier to Latin America.
The deal with owner Globalia follows the conversion of €100 million seven-year loan to into a 20% equity stake in Air Europa last August.
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IAG described the acquisition as “strategically important” and positions it to benefit from growth opportunities in the Latin America and Caribbean market, as well as to increase connectivity to Asia.
However, completion could take as long as 18 months to clear regulatory hurdles.
IAG chief executive Luis Gallego said: “This agreement will enable IAG’s Madrid hub to compete on an equal footing with other European hubs and consolidate its position in the South Atlantic.
“Madrid is the main gateway between Latin America and Europe and there are opportunities to expand its network, providing significant benefits to our customers, employees and shareholders.”
Air Europa will join fellow Spanish carrier Iberia and Vueling under the IAG umbrella.
The agreement came ahead of IAG announcing annual financial results today (Friday).
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