Italian Government and Lufthansa Reach ITA Airways Merger Agreement
A last-minute deal has revived merger talks between the Italian government and Lufthansa, with Italy’s Ministry of Economy and Finance confirming a sale of ITA Airways shares to the German airline group. Following negotiations in 2023, Lufthansa is set to acquire a 100% stake in ITA Airways, with an initial investment of €325 million ($358 million) and a plan to reach full ownership by 2033 through a total investment of €829 million ($912 million).
On November 7, 2024, the deal faced delays after Lufthansa requested a €10 million ($11 million) reduction on its next payment installment, causing negotiations to stall. Italy’s Minister of Economy and Finance, Giancarlo Giorgetti, held urgent discussions with Lufthansa’s CEO, Carsten Spohr, on November 11 to prevent the agreement from unraveling. After reaching a consensus, both parties confirmed the sale terms remained consistent with the original agreement, and a revised plan was presented to European regulators by the EU’s midnight deadline.
To ensure competitive fairness, the European Commission requested concessions, including opening Rome-Milan and select Central European routes to rival carriers and reallocating certain Milan-Linate (LIN) airport slots. Lufthansa initially acquired a 41% stake in ITA Airways in May 2023, with this second 49% stake sale maintaining the original price.
As the merger progresses, Lufthansa and ITA Airways are set to explore cooperation on operational fronts, advancing Lufthansa’s expansion in the Italian market, pending European Commission antitrust approval.
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