IAG's share price fell on Monday as Brussels sent the airline a list of objections concerning its planned acquisition of Spanish carrier Air Europa.

The European Commission fears that the transaction will restrict competition in the passenger market, particularly on routes within, to and from Spain.

In this context, the European executive fears that customers will face higher prices and/or lower quality of service after the merger.

Brussels explains that, particularly on short-haul routes linking Spain with countries in Europe and the Middle East, IAG and Air Europa could find themselves in direct competition.

The problem, adds the EU, is that competition on these routes is limited and comes mainly from low-cost carriers such as Ryanair, which in many cases operate from more distant airports.

The Commission opened an in-depth investigation into the deal earlier this year, before ruling that the concessions offered by IAG and Air Europa were not sufficient.

This new list could force the two groups to propose new concessions, in order to resolve the issues raised by the Commission.

In the meantime, IAG shares were down by around 0.1% on Monday on the London Stock Exchange.

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