💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

EU exec clears Lufthansa to buy Brussels Airlines

Published 06/22/2009, 05:54 AM
Updated 06/22/2009, 05:57 AM
TTEF
-

BRUSSELS, June 22 (Reuters) - Lufthansa won permission from EU antitrust authorities on Monday to buy Brussels Airlines in a deal worth up to 250 million euros ($347 million), after it agreed to let rivals fly on some of its routes.

"The comprehensive remedies package offered by Lufthansa will facilitate market entry on the affected routes and thereby create alternative choices for passengers," EU Competition Commissioner Neelie Kroes said in a statement.

To address the European Commission's competition concerns, Lufthansa will allow new entrants to operate flights from Brussels to Frankfurt, Munich, Hamburg and Zurich. The remedies also include code-share agreements and participation in frequent-flyer programmes.

The acquisition of Brussels Airlines will boost Lufthansa's network.

As part of the deal, Lufthansa will buy a 45 percent stake in Brussels Airlines for 65 million euros, with an option to buy the rest from 2011. The total price would depend on performance-related factors and, initially, on 2010 results.

Airlines around the world are looking to merge with or acquire rivals to boost scale and tap into growth regions following falling demand due to the global economic crisis.

The Commission is now looking into Lufthansa's proposed buy of indebted, loss-making Austrian Airlines, with the deadline for that review set for July 1. ($1=.7197 euro) (Reporting by Foo Yun Chee; Editing by Dale Hudson and Simon Jessop)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.