ROME (AP) -- Germany's Lufthansa Group on Friday finalized its acquisition of Italian airline ITA Airways, closing a long period of uncertainty for Italy's former flagship carrier.
Under the 325-million-euro ($350 million) deal, Lufthansa takes an initial 41% stake in ITA, formerly Alitalia, from the Italian government, gaining full control by 2033 with a total investment of 829 million euros.
The remaining 59% will initially continue to be held by the Italian Treasury.
This deal was originally announced in May 2023 and was approved by the European Commission following a year-long investigation and with conditions to protect competition. The commission noted that Lufthansa, ITA and its partners, for example, control most routes from Rome and Milan to North America.
Under the deal, the merged company must make it possible for rival airlines to launch non-stop flights between Rome or Milan and central European airports, where competition is limited; make room for rivals on long-haul routes between Italy and the United States and Canada, and allot slots at Milan's Linate airlines to competitors.
"With our investment, we will now strengthen the Italian and European aviation market and the position of the Lufthansa Group as number one in Europe," said Carsten Spohr, Chief Executive Officer Deutsche Lufthansa AG.
"Our joint passengers worldwide will benefit from improved offers and optimized connections as early as this upcoming summer flight schedule," he added.
