(Corrects bullet point to show Luftahnsa is buying theremaining 55 percent, not 65 percent, of Brussels Airlines)
* Lufthansa to buy remaining 55 percent of Brussels
* Forms part of Eurowings expansion
* More details at press conference on Thursday
BRUSSELS, Dec 14 (Reuters) - Lufthansa has reacheda deal to fully take over Brussels Airlines, the Belgian carriersaid on Wednesday, part of a drive by the German carrier to growits budget unit and consolidate the fragmented European airlinesindustry.
"I can confirm that a deal has been reached," a spokespersonfor Brussels Airlines said, adding further details would begiven at a news conference on Thursday morning.
Lufthansa bought 45 percent of Brussels Airlines from ownerSN Airholding in 2009 for 65 million euros ($73 million), withan option to acquire the rest from 2011.
Its decision, taken in September, to acquire the rest via acall option forms part of the expansion of its budget Eurowingsdivision, the carrier's response to competition from Ryanair and easyJet.
A source has previously said that because Lufthansa hasloaned 45 million euros to Brussels Airlines, the German carriercan buy the remaining stake for as little as 2.6 million euros.
The deal for Brussels Airlines, plus a plan to lease 35planes and crew from struggling Air Berlin will see Eurowingsgrow to over 160 planes from a current 90 aircraft by the end ofnext year.
Lufthansa management has praised restructuring efforts atBrussels that have brought its costs down to among the lowest inthe Lufthansa Group. Brussels Airlines is also strong on routesto Africa, where Lufthansa has gaps in its network.
Brussels Airlines served a record 7.5 million passengers in2015 and made a record net profit of 41.3 million euros,although that is expected to fall this year after the Brusselsairport attack in March. (Reporting by Robert-Jan Bartunek; Additional reporting byVictoria Bryan in Berlin; editing by Philip Blenkinsop and MariaSheahan)