IAG to buy BMI airlines
IAG and Lufthansa are to pay £172.5 million in cash to purchase bmi.
Merger and acquisition consultants may have been required by International Airlines Group (IAG) as it has reached an agreement on its purchase of British Midland Limited (bmi).
The transaction is worth £172.5 million in cash and the firm will be making the purchase with Deutsche Lufthansa AG (Lufthansa).
Before the deal is completed, Lufthansa has the option to sell two of bmi's district business units - bmi regional and bmibaby - and there will be a reduction in price if the bmibaby sale does not take place.
As a result of the move, IAG will gain up to an additional 56 daily slot pairs at Heathrow, which is a key airport hub for the company.
Chief executive of the enterprise Willie Walsh said: "Customers will benefit from access to new destinations, more convenient schedules, enhanced frequent flyer benefits and greater investment than had been possible for loss-making bmi."
Share prices for IAG were up 3.4 per cent on the London Stock Exchange today (December 22nd), taking them to 148.5p per share.
Posted by David Gleck
Source: IAG press release, December 22nd