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The corporations haven't done enough, according to the newspaper's sources, to allay the European Commission's worries about the deal's potential to reduce competition in the European market.
The FT's sources say that EC authorities have informed the firms that their proposals, which among other things include giving competitors roughly half of Air Europa's slots, are insufficient for the EC to accept the acquisition.
The regulatory body has until August 20th to decide what to do. According to the sources, there is currently a "very high" chance that the purchase would be blocked.
In February of last year, IAG—which also owns British Airways and Iberia—announced that it would buy 80% of Air Europa for €400 million. IAG is making a second effort to buy the Spanish airline. The first time, during the height of the COVID-19 pandemic, it was obliged to postpone its plans.
source: ft.com
The FT's sources say that EC authorities have informed the firms that their proposals, which among other things include giving competitors roughly half of Air Europa's slots, are insufficient for the EC to accept the acquisition.
The regulatory body has until August 20th to decide what to do. According to the sources, there is currently a "very high" chance that the purchase would be blocked.
In February of last year, IAG—which also owns British Airways and Iberia—announced that it would buy 80% of Air Europa for €400 million. IAG is making a second effort to buy the Spanish airline. The first time, during the height of the COVID-19 pandemic, it was obliged to postpone its plans.
source: ft.com
