The purchase of Air Europa by the IAG group is temporarily halted. The European Commission has informed the airline group that owns Iberia and Vueling that it has “stopped the clock” in its study of the operation. What is known as “stop the clock” is a procedure that the company expected and is regularly used in this type of process.
Now Brussels, which has already expressed its doubts about the acquisition of Air Europa due to the competition problems it could entail, adopts this decision that serves to gather additional information without consuming the regulated time.
“IAG will work to provide all the requested data in its possession as soon as possible,” say Iberia sources. “IAG’s wish is that the European Commission authorizes with all guarantees the purchase of the airline” from the Globalia group, they add.
The CEO of IAG, Luis Gallego, insisted last week that his proposal to transfer routes to be able to pass the Competition process is ambitious. And he once again highlighted the importance of the operation receiving approval. “It will allow us to combine the strength of Iberia and Air Europa in Spain, which will bring important benefits for consumers, for the Madrid-Barajas hub and for the competitiveness of our country’s economy,” company sources add.
At this moment the purchase of Air Europa by IAG is in Phase II. The viewing period is between 90 and 110 days. But the first temporary halt to talks adds more time to the operation. The holding company does not rule out new stops of the clock over the coming months.
IAG stated last week, on the occasion of the presentation of 2023 results, that it expects to receive approval for the acquisition of Air Europa at the end of this year.
