Lufthansa has completed negotiations for a 41 percent stake in Italy's ITA Airlines

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(Bloomberg) — Deutsche Lufthansa AG acquired a minority stake in the Italian airline provider late on Friday after making an initial offer for the rival in January 2023.

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The German airline has agreed to take a 41% stake in Alitalia’s successor for 325 million euros ($334 million), while the remaining 59% will initially be held by Italy’s Ministry of Economy and Finance, according to a statement published on Lufthansa. website. However, both parties agreed on options for Lufthansa to buy the remaining ITA shares from this year.

“With our investment, we are now strengthening the Italian and European aviation market and the Lufthansa Group’s number one position in Europe,” said Lufthansa CEO Carsten Spoor.

The two-stage deal reflects Lufthansa’s efforts to gain a stronger foothold in Europe’s largest aviation market. The deal has faced intense scrutiny from the EU Commission in Brussels, particularly over its impact on long-haul travel.