29 Sep Lufthansa Acquires Brussels Airlines
Lufthansa has acquired Brussels Airlines. The move is not an unexpected one since the German carrier already had a stake of 45% in its Belgian peer. The take over has likely been accelerated by the Brussels bombings, which has costed Brussels Airlines millions in revenues.
Acquisition Brussels Airlines by Lufthansa matter of time
The acquisition of Brussels was only a matter of time. In September 2008 Lufthansa bought a 45% stake in Brussels airline for €65 million and could acquire the entire airline for €250 million before expiration date until 2017.
Brussels Airlines, however, received a €100 million loan and as long as this loan would not have been paid off the German carrier would receive a significant discount when acquiring the airline, instead of the acquisition price of €185 million that was agreed upon.
Brussels Airlines so far had paid €45 million back, this would value the company at €195 million. The airline was prepared to pay off the remainder of the loan, but Lufthansa and its shareholders refused in order to receive higher discounts upon acquisition.
According to Belgian media Lufthansa acquired Brussels airlines, an airline with 90 destinations and 49 aircraft, for under €3 million. The airline could operate as a stand-alone daughter just like some other subsidiaries, but there is a significant chance that it will be integrated in Lufthansa’s low-cost daughter Eurowings.