Iberia has reportedly struck a deal to acquire the Globalia airline, Air Europa which is owned by International Airlines Group, or IAG.
Iberia will pay between 300 and 400 million euros for Air Europa, which will be offset by 4.5% of IAG shares, according to El Confidencial.
Insiders claim the agreement between IAG CEO, Luis Gallego and Air Europa Chief Executive Javier Hidalgo is already complete but so far Globalia and Iberia have remained tight-lipped.
An official announcement is apparently pending Government approval of the 475 million euro SEPI rescue package for Air Europa.
The Hidalgo family reportedly accepted the IAG shares, which they can’t not sell for a minimum of three years, because they would rather become one of IAG's reference shareholders than be audited by the Sociedad Estatal de Participaciones Industriales or SEPI.