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04 Nov 2019 | 07:36

IAG's Iberia agrees to acquire Air Europa for €1bn

British Airways owner International Consolidated Airlines said its subsidiary Iberia had agreed to acquire Air Europa for €1bn. The acquisition would offer 'significant' synergy potential in terms of cost and revenue, the company said. It also would be earnings-per-share accretive in the first full year and accretive to IAG's return on invested capital by the fourth year after completion, it added. Completion was expected to take place in the second half of 2020 following receipt of relevant approvals. 'Acquiring Air Europa would add a new competitive, cost effective airline to IAG, consolidating Madrid as a leading European hub and resulting in IAG achieving South Atlantic leadership, therefore generating additional financial value for our shareholders,' Willie Walsh, chief executive of IAG.

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