Deutsche Lufthansa AG (Lufthansa) and International Consolidated Airlines Group S.A. (IAG) have today reached an agreement in principle on the sale of British Midland Ltd (BMI) to IAG.
The sale and closing of the deal remain subject to conditions including a binding purchase agreement, further due diligence and regulatory clearances. It is envisaged that the purchase agreement will be signed in the coming weeks and the aim is for the transaction to be completed in the first quarter of 2012.
Lufthansa took control of BMI in 2008 by acquiring the 50% of shares owned by then-chairman Sir Michael Bishop, bringing its shareholding to 80%. BMI reported a loss of €154 million for the first nine months of this year. If the deal goes through, IAG will increase its slots at London Heathrow Airport from 45% to 54%.