Iberia to acquire Air Europa for EUR500m

IAG and Globalia amended (19-Jan-2021) the original agreement in which Iberia will acquire the entire issued share capital of Air Europa Lineas Aereas. Details include:

• Iberia will pay EUR500 million for the acquisition of Air Europa, a reduction from the EUR1 billion previously agreed;
• Payments will be deferred until the sixth anniversary of the acquisition completion;
• The revised terms in the amendment agreement are conditional on the satisfactory negotiation between Iberia and Spain's Sociedad Estatal de Participaciones Industriales (SEPI) regarding the non-financial terms associated with the financial support provided by SEPI to Air Europa during 2020;
• Completion of the acquisition is expected to take place in 2H2021, subject to approval by the European Commission;
• Details of Air Europa:
  • Gross assets: EUR967 million as of 31-Dec-2019;
  • Revenue (2019): EUR2.1 billion;
  • Operating profit (2019): EUR71 million;
  • Pre-tax profit (2019): EUR42 million
  • Passengers (2019): 13.1 million. Passenger volumes declined approximately 70% in 2020;
  • Current operating fleet: 52 aircraft, compared to 68 at the end of 2019. All aircraft except one are on operating lease.

IAG CEO Luis Gallego stated: "Being part of a large group is the best guarantee to overcome current market challenges which will also benefit Air Europa once the transaction is completed". He added: "I am pleased that we have reached agreement with Globalia to defer payment until well into the expected recovery in air travel following the end of the pandemic and when we expect to be realising significant synergies resulting from the transaction". [more - original PR]