Lufthansa has been continuously eyeing to acquire Italy's ITA Airways and a recent news indicates that the group will be completing the acquisition by April in its second attempt, after failing to do so in the first round.
Post exit of Air France KLM , Deutsche Lufthansa AG had submitted an offer to acquire a stake in ITA. The plan was to agree on the initial acquisition of a minority stake as well as an options to purchase the remaining shares at a later date.
Lufthansa remains interested in ITA Airways stake despite the Italian carrier's massive net loss of nearly $500m in 2022.
The German airline CEO however seeks a price discount due to ITA's financial struggles.
Lufthansa also submitted the offer to the Italian Ministry of Economy and Finance (Ministero dell'economia e delle finanze) to conclude a Memorandum of Understanding (MoU) in this respect.
In its non-stop attempt, Lufthansa lured ITA Airways by showcasing its Revenue generation capability and existing network from sister airlines , as Lufthansa Group is seeking to acquire a stake in the Italian carrier.
Italian government and the Lufthansa group had opened exclusive negotiations at the end of January on the acquisition by the German airline group of a minority stake in ITA Airways.
According to the sources in Italy, Lufthansa aimed a 40% share, initially valued at between 250 and 300 million euros , but then revised downwards, around 200 million euros.
Back to the present day, Lufthansa Group and ITA Airways have now agreed on an "industrial plan" providing for the development of the Italian airline in the event of a takeover by the German airline group.
" The common industrial plan that will determine the fleet, network and strategic development objectives of ITA Airways " was at the center of a meeting in Rome between the CEO of Lufthansa Group, Carsten Spohr, and the Italian Minister of Economy, Giancarlo Giorgetti, according to a press release from the ministry. “ Today's meeting marks new progress in the direction of the industrial partnership between the two carriers ,” commented the Italian ministry, which described the meeting with the German group as “ positive ”.
More than the ITA as an airline, Lufthansa would be much interested in the lucrative Italian routes, and industry should not be much surprised if the Italian carrier becomes another low-cost subsidiary of Lufthansa Group.
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