(CercleFinance.com) – The European Commission announced on Tuesday that it would open an in-depth investigation into Lufthansa’s planned acquisition of a stake in the former Alitalia, which did not prevent the airline’s stock from progressing by almost 2% on the Frankfurt Stock Exchange.
At the end of last November, Lufthansa expressed its intention to invest in ITA Airways, the carrier born from the ashes of Alitalia, alongside the Italian Ministry of Economy and Finance.
In a press release, Brussels explains that it fears that the operation will reduce competition in the market for passenger air transport services for several short-haul and long-haul routes to and from Italy.
According to the EU’s executive arm, the tie-up could reduce competition on short-haul routes linking Italy to central European countries, where Lufthansa and ITA face direct competition with non-stop flights to which there is little competition.
The Commission explains that Lufthansa has presented commitments aimed at remedying certain problems, but considers that these concessions are not enough to allay its fears.
This announcement comes as Lufthansa saw its debt rating raised by the three major rating agencies (Moody’s, Standard and Poor’s and Fitch) which now classifies it as investment grade, a decision within the European airline sector.
The stock therefore posted gains of around 1.9% late Tuesday afternoon.
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