Lufthansa and IAG sign agreement for the sale of British Midland Ltd.
Deutsche Lufthansa AG (Lufthansa) and International Airlines Group (IAG) have today signed a binding purchase agreement for the sale of British Midland Ltd. (bmi) to IAG.
The gross purchase price is 172.5 m GBP (approx. 207 m EUR) in cash. After agreed price reductions the net purchase price is expected to be significantly negative. With the transaction Lufthansa is disassociating from a sustainably loss-making subsidiary. As part of the agreement, a British holding company of Lufthansa will take on bmi’s defined pension benefit scheme. The closing of the transaction is planned for the first quarter of 2012 and remains in particular subject to approval by the antitrust authorities.