Lufthansa (DLAKY, Financial) is in the final stages of negotiations with the Italian government concerning the acquisition of ITA Airways. The two parties had been at odds over the purchase price for a 41% stake in the struggling airline. However, sources indicate that significant progress has been made, resolving the major points of contention.
The acquisition faced hurdles last week when Lufthansa sought a price reduction from the initially agreed 325 million euros ($346 million). This reevaluation arose as ITA Airways' value had declined since the initial agreement in 2023. The Italian government opposed the discounted offer, creating uncertainty in the deal's finalization.
If completed, the sale of ITA Airways would alleviate Italy's responsibility over the airline's predecessor, Alitalia, which has been a financial burden on the state for decades. The Italian Prime Minister, Giorgia Meloni, stands to benefit from offloading this responsibility.
