Govt, Lufthansa reach breakthrough for ITA merger

(ANSA) - ROME, NOV 12 - The Economy and Finance Ministry (MEF) and Lufthansa reached a breakthrough in talks late on Monday to overcome a problem that had put the German company's merger with ITA Airways on ice. The Treasury said the economic conditions envisaged in the 2023 contract for the merger "have not undergone any changes". As a result of the breakthrough, the documents for the operation have been signed and sent to the European Commission for final approval.
    According to an agreement reached last year, the German airline is acquiring from a 41% stake in ITA from MEF through a 325-million-euro capital increase, with the stake set to rise to 100% in a second phase - by 2033 - for a total investment of 829 million. But the deal was put on hold last week after the German group reportedly asked for a reduction of around 10 million euros on the second tranche of just over half a billion euros.
    The MEF owns ITA, the company that replaced the loss-making former flag-carrier Alitalia in 2021. (ANSA).