Italy says all systems go for Lufthansa to buy into ITA

The path for Lufthansa to take over the state-owned Italian airline ITA is clear, as the required documents for the buyout were submitted on time to the EU competition authority, Italy’s finance ministry said on Monday.

“We confidently await the final approval from the European Commission to advance the completion of the transaction,” the ministry said in a statement.

Negotiations between the Italian government and the German airline had stalled yet again in the past days after a fundamental agreement had long been reached. The dispute was about the final price, Italian media reported.

But the finance ministry said there have been no changes in the economic agreement since the deal was signed. Lufthansa had no immediate comment.

The German carrier is to initially acquire 41% of ITA’s shares for €325 million ($346 million) with an option to buy the whole company, which would cost more than more than €800 million.

The EU Commission had already given the initial green light for plan in June, but had set a series of conditions. These included the requirement to cede take-off and landing rights to competitors.

The negotiations over the entry of Europe’s most revenue-rich airline group into the former Italian competitor dragged on for more than a year. Italia Trasporto Aereo (ITA) emerged in 2020 from the state airline Alitalia, which repeatedly fell into severe economic turbulences. According to the latest information, the company employs just under 4,900 staff members.

The path for Lufthansa to take over the state-owned Italian airline ITA is clear, as the required documents for the buyout were submitted on time to the EU competition authority, Italy’s finance ministry said on Monday.

“We confidently await the final approval from the European Commission to advance the completion of the transaction,” the ministry said in a statement.

Negotiations between the Italian government and the German airline had stalled yet again in the past days after a fundamental agreement had long been reached. The dispute was about the final price, Italian media reported.

But the finance ministry said there have been no changes in the economic agreement since the deal was signed. Lufthansa had no immediate comment.

The German carrier is to initially acquire 41% of ITA’s shares for €325 million ($346 million) with an option to buy the whole company, which would cost more than more than €800 million.

The EU Commission had already given the initial green light for plan in June, but had set a series of conditions. These included the requirement to cede take-off and landing rights to competitors.

The negotiations over the entry of Europe’s most revenue-rich airline group into the former Italian competitor dragged on for more than a year. Italia Trasporto Aereo (ITA) emerged in 2020 from the state airline Alitalia, which repeatedly fell into severe economic turbulences. According to the latest information, the company employs just under 4,900 staff members.