The European Union has this week warned that the proposed acquisition of a stake in ITA Airways by Lufthansa could reduce competition.
It is understood, as per reporting from Reuters, that the German carrier wishes to take a 41% stake in the Italian carrier.
Without further ado, let’s get into it…
Lufthansa-ITA Airways: European Union Goes On The Offensive…
The Commission in the European Union mentioned that this deal between Lufthansa & ITA Airways could hinder competition, and wanted stronger remedies off the German carrier for this deal to go through.
A investigation has been opened into the proposed deal as well as whether it’s joint venture partners of United and Air Canada should be treated as a single entity post-merger.
In a statement, EU antitrust chief Margrethe Vestager said the following on this:
“We want to further assess the transaction and ensure that the acquisition of ITA does not reduce competition in short-haul and long-haul traffic and that it will not lead to higher prices, less capacity or lower quality for passenger air transport services in and out of Italy,”
It is understood that a decision deadline of June 6 has been set for the fate of the proposed merger between ITA Airways & Lufthansa.
Looking ahead, all eyes will be on how the investigation goes, as well as whether the German carrier can get this over the line later in the Summer.
But for now, the clock is ticking on a decision, and it will be interesting to see what the outcome is.
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