International Consolidated Airlines Group. S.A.

M&A Activity • Dec 16, 2021

National Storage Mechanism | Additional information

RNS Number : 9220V

International Cons Airlines Group

16 December 2021

IAG and Globalia agree to terminate Air Europa acquisition agreement and to work on alternative structures

International Airlines Group ("IAG") and Globalia today announce that they have terminated the agreement signed on 4 November 2019 and amended on 20 January 2021, under which IAG's subsidiary, Iberia, had agreed to acquire the entire issued share capital of Air Europa (the "Acquisition").

IAG has also reached an understanding with Globalia to evaluate, before the end of January 2022, alternative structures that may be of interest to both companies and offer significant benefits for their shareholders, customers and employees.

In addition to the previously agreed break-fee of €40 million, IAG will pay Globalia €35 million. Both parties have agreed that these amounts will be applied to reduce any future purchase price if a new agreement is reached and to avoid any litigation relating to the Acquisition.

Luis Gallego, IAG's chief executive, said:

"It is very disappointing that we have had to terminate the current agreement to acquire Air Europa but the decision makes sense due to the market conditions, the deep crisis resulting from COVID-19 and taking into account our desire to maintain a disciplined approach to capital allocation. However, we have committed to analyse alternative arrangements with Globalia that could deliver significant benefits. In the same way, we will continue to work with the Spanish Government to guarantee the connectivity of Spain and the development of the Madrid hub.

"As it has for the last 94 years, Iberia will continue to carry out its mission to connect Spain with the world, working hard to strengthen and develop the Madrid hub so that it can compete as an equal with the other European hubs."

Stephen Gunning

Chief Financial Officer

16 December 2021

LEI: 959800TZHQRUSH1ESL13

This announcement contains inside information and is disclosed in accordance with the Company's obligations under the Market Abuse Regulation

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

ACQDKABBBBDDQBD