EU gives conditional nod to Lufthansa’s proposed ITA Airways stake

BRUSSELS: The EU on Wednesday announced its conditional approval for German airline Lufthansa’s proposed stake in ITA Airways, a deal that Italy called a “big European success”.

Lufthansa, one of Europe’s largest carriers, last year agreed to pay 325 million euros ($350 million) for a 41 percent stake in ITA, with the Italian finance ministry also contributing 250 million euros as part of the capital increase.

The German airline’s presence in Italy will be bolstered by the deal and said it would give more options for travel to Africa, South America and the Middle East.

But it has faced a turbulent process to get regulators’ approval after the European Commission opened an in-depth probe in January, fearing it could hurt competition.

The commission, the EU’s antitrust regulator, has now given the green light after Lufthansa and the Italian government offered a package of commitments to assuage those fears. “Despite the comprehensive and far-reaching concessions, the investment in ITA Airways strengthens the Lufthansa Group’s position in global competition,” Lufthansa CEO Carsten Spohr said in a statement.