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BERLIN/ROME (Reuters) -German carrier Lufthansa said on Wednesday it had offered to buy an initial minority stake in ITA Airways, Italy’s state-owned successor to Alitalia.
Lufthansa said Italy is the most important market outside of its existing home markets and the United States, noting its prominence as both a business and tourism destination.
The move comes after the new right-wing administration in Rome passed a decree in December to initially sell a minority stake through capital increases, in order to speed up a full divestment in ITA.
Beside its domestic German business, Lufthansa already operates the brands Swiss, Austrian Airlines and Brussels Airlines.
“The plan is to agree on the initial acquisition of a minority stake as well as on options to purchase the remaining shares at a later date,” Lufthansa said in a statement, adding it hoped to sign a Memorandum of Understanding with the Italian Economy Ministry and move on to exclusive talks.
Two sources said previously that ITA’s shareholders will convene to give a green light to the capital increase once the Italian Treasury signs off on the memorandum with Lufthansa, a process Italy aims to finalise quickly.
ITA in 2021 posted an operating loss of 170 million euros and analysts believed a merger with a stronger rival was the only option left for the airline, seen as unable to survive national and international competition as a standalone company.
Lufthansa became the frontrunner after Italy held talks last year with U.S. private equity fund Certares, Air France KLM (OTC:AFLYY) and Delta about a deal for ITA but failed to reach an agreement.
Air France confirmed earlier on Wednesday that it would not bid for ITA.
