International Airlines Group has terminated its February 2023 agreement with Globalia to acquire for €400 million the remaining 80 percent stake in Spanish carrier Air Europa, IAG announced Thursday.
The board “has concluded that in the current regulatory environment, it would not be in the best interest of shareholders to continue with this transaction,” according to the airline group.
IAG will pay Globalia €50 million as a breakup fee in accordance with the terms of the agreement, and the airline group will continue to hold a 20 percent equity stake in Air Europa, which it acquired on Aug. 16, 2022, according to IAG.
“IAG remains committed to its strategy, including competing effectively from its Madrid hub,” IAG CEO Luis Gallego said in a statement. “We will continue to develop our presence in Madrid so that the hub can develop as a rival to Europe’s largest hub airports.”
This is the second time IAG has canceled its plans to acquire Air Europa; the first was in December 2021.