Lufthansa’s acquisition of ITA Airways is facing a last minute setback due to a last-minute dispute with the Italian Ministry of the Economy and Finance (MEF) over the final purchase price, delaying a key regulatory step.
The MEF refused to sign a negotiated remedy package for submission to the European Commission, citing unwillingness to sell ITA at its perceived undervalued price.
The agreement entails Lufthansa paying €325m for an initial 41% stake and a potential further €325m for an additional 49%, with adjustments based on ITA’s financial performance.
Both parties have until November 11 to resolve the issue; failure to do so could result in a complete restart of the European Commission approval process, significantly delaying or jeopardising the deal.
