British Airways owner International Airlines Group is to take a 20% state in Spanish carrier Air Europa.
IAG first mooted a deal for subsidiary Iberia to take over its Spanish rival in November 2019 for €1 billion.
However, IAG terminated a bid in December to acquire Air Europa from owner Globalia due to competitive concerns and instead agreed to make a loan of €100 million three months later.
The agreement carried an option to convert it into an equity stake of 20% in Air Europe, which specialises in flights between Spain and South America.
At the time, IAG – which also owns Spanish budget carrier Vueling – said it maintained an interest in developing Madrid as a hub and analysing “alternative arrangements” with Globalia.
IAG said today: “Further to the announcement made by on 17 March 2022 relating to the convertible loan to Globalia, IAG announces that it has exercised its option to exchange the group’s €100 million seven-year unsecured loan to Globalia for a 20% equity stake in Air Europa.”
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