Iberia buys Air Europa for 1,000 million euros

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The airline giant IAG, the airline group that includes Iberia, British Airways, Vueling, Air Lingus and Level, has announced the purchase of Spain's Air Europa for 1,000 million euros , which will be paid in cash at the close of the operation, according to The air holding company announced this Monday.

Specifically, IAG's Madrid hub will become a "true rival" for the four largest hubs in Europe: Amsterdam, Frankfurt, London Heathrow and Paris Charles De Gaulle .

In addition, the operation will involve repositioning IAG "as a leader" in the European market to Latin America and the Caribbean and will offer "significant potential synergies" in terms of costs and revenues.

Earnings per share will increase during the first full year and the return on invested capital of IAG will increase in the fourth year after closing.

The closing of the transaction is expected to take place in the second half of 2020 after obtaining the appropriate authorizations.

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