British Airways owner IAG has officially taken a 20% stake in Spanish carrier Air Europa.
It converted the €100 million loan it provided earlier this year into the stake.
“IAG announces that it has exercised its option to exchange the group’s €100 million seven-year unsecured loan for a 20% equity stake in Air Europa,” IAG said.
IAG’ had previously offered €1 billion for control of Air Europa, and then reduced it to €500 million due to the pandemic.
Air Europa is the third largest airline in Spain, after Iberia and Vueling which are both owned by IAG.
That would make an acquisition of Air Europa problematic with EU regulators.
Air Europa currently has a fleet of about 40 aircraft.