The European Commission has given its approval for Lufthansa’s acquisition of a 41% stake in Italy’s ITA Airways. The deal, valued at €325 million, is part of Lufthansa’s strategy to strengthen its position in the global aviation market. The transaction is expected to be finalized in the final quarter of 2024.
As part of the agreement, Lufthansa will have the option to acquire the remaining shares in ITA Airways at a later date. The deal is subject to certain conditions, including the provision of remedies to address competition concerns.
The European Commission’s approval follows an ‘in-depth review’ into the potential impact of the acquisition on competition in the European aviation market. The Commission concluded that the deal would not significantly impede effective competition in the relevant markets.
“The acquisition of ITA Airways strengthens the internationalization of the Lufthansa Group. We offer our guests a significantly greater choice of connections and destinations, and with the 5-star hub in Rome we are also extending our premium offering and better connecting strategic future markets south of the equator to our network, “said Lufthansa Group chief Carsten Spohr in a news release. “Despite the comprehensive and far-reaching concessions, the investment in ITA Airways strengthens the Lufthansa Group’s position in global competition. We will make ITA Airways a strong and successful part of our company and thus secure its future as an international airline and strong brand. ITA Airways will support us in further expanding our position as Number One in Europe.”
The deal is also expected to lead to ITA Airways’ departure from the SkyTeam alliance, with the airline likely joining the Star Alliance, of which Lufthansa is a founding member.
