EU Concerns Over Lufthansa's $352M ITA Deal

Deutsche Lufthansa AG’s €325 million investment in Italian carrier ITA Airways is facing potential obstacles as European Union merger watchdogs raise competition concerns. The European Commission has identified worries that the deal could impede competition on certain routes between Italy and central European countries, as well as flights connecting Italy with the US, Canada, and Japan. Additionally, the watchdog expressed apprehension that the merger could further bolster ITA’s dominant position at the Milan-Linate airport. The warning from EU regulators poses a challenge for Lufthansa's substantial investment in ITA Airways and signals potential hurdles ahead in finalizing the deal.