German flag carrier Deutsche Lufthansa (Lufthansa) has submitted an offer to acquire a stake in the Italian loss-making national carrier ITA Airways.

In its proposal, the German airline said that it intends to initially pick a minority stake in ITA, with an option to acquire the remaining stake at a later stage.

However, it did not disclose financial details.

According to Bloomberg, Lufthansa plans to buy as much as 40% of the Alitalia successor in a first step.

The stake is valued at €200m-€300m, stated Reuters citing a source familiar with the development.

In a statement, Lufthansa said: “Today, the company submitted an offer to the Italian Ministry of Economy and Finance (Ministero dell’economia e delle finanze) to conclude a memorandum of understanding (MoU) in this respect.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

“For Lufthansa Group, Italy is the most important market outside of its home markets and the US. Italy’s importance for both business and private travel lies in its strong export-oriented economy and status as one of Europe’s top vacation spots.”

Depending on the MoU, both parties will get involved in further exclusive talks.

These discussions would prioritise the form of a possible equity investment, the commercial and operational integration of ITA into Lufthansa, as well as resulting synergies.

Lufthansa added: “In case of a binding agreement is reached, its implementation would be subject to approval by the relevant authorities.”

The carrier initially placed a joint bid with shipping firm MSC for the ITA deal but was left to pursue it solo after MSC dropped out from the race in November last year. 

In a separate development, Air France-KLM has also confirmed its intention to withdraw from the deal.

Last November, the Italian Government invested $400m in ITA Airways as it intended to sell the airline.

The investment from the government allowed the company to stay afloat amid a slower-than-expected sale process.

Alitalia stopped operations after accumulating a debt exceeding $11bn.