British Airways parent IAG has gained control of budget airline Vueling for €123.5 million.
IAG already held a 45% stake in the Barcelona-based carrier but it has now increased its stake to 90% after the majority of remaining investors accepted its offer of €9.25 a share.
Vueling is expected to remain a stand-alone carrier operated by its CEO Alex Cruz, who will report directly to IAG CEO Willie Walsh. IAG already owns Iberia.
Vueling chairman Josep Pique said a significant number of shareholders had followed the board’s recommendation to sell their stakes to IAG.
"On that occasion, the Board considered that the price per share by IAG offered was fair," he said, "but more importantly, we said that the full integration of Vueling into the IAG structure offers significant strategic opportunities for future growth and development.
"Today I can only reiterate that view. I am convinced that Vueling will maintain the dynamism, innovative spirit and competitiveness that are the foundation of its success.
"Those attributes, along with a reinforced presence in IAG, will allow us to continue to grow and consolidate our position as a unique as a unique player in European commercial aviation".
