Iberia acquires Air Europa for 1,000 million euros

The International Airlines Group (IAG) company announced on Monday the purchase of Air Europa for one billion euros to be paid in cash at the close of the operation, as announced by the air holding company on Monday.

As reported by the business group to the National Securities Market Commission (CNMV), the acquisition was made through the Spanish airline Iberia, one of the oldest and most recognized in the world, who established the purchase agreements with the Corporate Corporation Globalia, to tansform Iberia into the largest company in Spain.

It is expected that with this operation the profit per share will increase during the first full year and the return on capital invested by IAG will increase in the fourth year after the close. “The acquisition of Air Europa means adding a new competitive and profitable airline to IAG, making Madrid, a leading European ‘hub’, and allowing IAG to achieve the leadership of the South Atlantic, thus generating additional financial value for our shareholders”, as started by Willie Walsh, CEO of the IAG Group.

Javier Hidalgo, CEO of Globalia, describes this new acquisition as a strengthening of the present and future of the company, which will give continuity to the line in recent years. “We are convinced that it will be a success for Air Europa to join a group like IAG, that has demonstrated during all these years its bet by the development of the airlines that conform them and by the ‘hub’ of Madrid“, expressed Hidalgo.

Air Europa is considered the largest private airline in Spain, operating regular national and international flights to 69 destinations, including European and long-distance routes to Latin America, the United States, the Caribbean and North Africa.

K.Villarroel

Source: 20minutes