Ryanair shares are higher Friday, after it received EU regulatory approval for its plan to purchase the remaining proportion of LaudaMotion it does not already own. The EU Commission attached no conditions to its approval.
By 1305 BST, Ryanair shares were trading 0.74% higher at €15.70. The stock has been moving broadly lower in recent weeks as a variety of strike action hit the budget airline.
Ryanair to take control of LaudaMotion
The EU Commission Friday gave its full approval of Ryanair’s plan to buy the remining 75% of LaudaMotion it doesn’t already own.
“The European Commission has approved unconditionally under the EU Merger Regulation the proposed acquisition of LaudaMotion by Ryanair,” the EU said Friday. “The Commission concluded that the transaction would raise no competition concerns in the European Economic Area.”
Ryanair welcomed the decision and said it would now go ahead with the purchase that would help offer more choice to European passengers. The purchase is part of Ryanair’s push into the Austrian and German budget airline market, which is dominated by Lufthansa.
“We welcome the EU Commission’s decision to approve Ryanair’s proposed acquisition of a 75% interest in Laudamotion,” said Juliusz Komorek’, Ryanair’s Chief Legal and Regulatory officer.
“Ryanair remains committed to bringing competition, choice and low fares to the Austrian, German and Spanish markets through our investment in Laudamotion,” Komorek added.
Ryanair unhappy with Lufthansa’s behaviour
While Ryanair was pleased the regulatory approval, it added that German airline Lufthansa is refusing to honour its agreement with regards to LaudaMotion, as set by the EU Commission as part of its Air Berlin purchase.
Ryanair said that Lufthansa has yet to deliver the two remaining aircraft to LaudaMotion as part of the 11 the EU Commission said it should in order to satisfy the conditions of its Air Berlin purchase.
“We urge the EU competition authorities to take action and prevent any further attempts by Lufthansa to damage competition through its anti-consumer behaviour,” Komerek said.